House Republicans sent a letter to regulators urging them not to rush rulemaking for the Dodd-Frank Act.
House Financial Services Committee Chairman Spencer Bachus sent the letter on Wednesday to bank regulators, Treasury Secretary Tim Geithner and Securities and Exchange Commission Chairman Mary Schapiro expressing concern that they were moving too quickly to implement the regulatory reform law. Reps. Jeb Hensarling, R-Texas, Scott Garrett, R-N.J., and Randy Neugebauer, R-Texas, also signed the letter.
"Businesses and consumers wishing to provide thoughtful input on proposed regulations are stymied by the sheer number of proposed rules in the pipeline, the diverse array of issue areas addressed by the proposed rules and the truncated comment periods," the Republican lawmakers wrote. "Furthermore, the consistency of rules across agencies is likely to be compromised when rules are issued hastily, creating opportunities for regulatory arbitrage. We are likewise concerned that the pace of the rulemaking may lead to failures to properly assess how small businesses will be affected."
The Dodd-Frank law calls for regulators to issue more than 300 rules. The lawmakers urged regulators to provide sufficient comment periods, and address flexibility and costs to small businesses. They also warned against conflicting rules.
"The current Dodd-Frank rulemaking process also creates difficulties for the regulators themselves," the lawmakers wrote. "The volume and pace of Dodd-Frank rulemakings increase the likelihood of conflicting rulemakings."
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