Senate Republicans are urging regulators to slow down implementation of Dodd-Frank by extending the comment periods on their rule proposals and conducting more “rigorous” analysis on those rules—including one on putting brokers under a fiduciary standard of care.
As Sen. Tim Johnson, D-S.D., chairman of the Senate Banking, Housing, and Urban Affairs Committee conducts his first hearing on Thursday on regulators’ implementation of Dodd-Frank, Senate Republicans sent a letter on Tuesday to all the top regulators asking that they “not sacrifice quality and fairness in exchange for speed,” in fulfilling their statutory mandate under Dodd-Frank.
The letter was sent to Federal Reserve Chairman Ben Bernanke; Securities and Exchange Commission (SEC) Chairman Mary Schapiro; Gary Gensler, chairman of the Commodities Futures Trading Commission (CFTC); Sheila Bair, chairman of the Federal Deposit Insurance Corp. (FDIC); and John Walsh, acting director of the Comptroller of the Currency.
The Republican Senators, including Richard Shelby, R-Ala., ranking minority member on the committee, and Michael Crapo, R-Idaho, asked regulators to extend their comment periods on proposed rules under Dodd-Frank from 40 days to 60.
The Senators pointed to the request for a more rigorous economic analysis raised by SEC Commissioners Kathleen Casey and Troy Paredes in the SEC’s study under Section 913 of Dodd-Frank, regarding putting brokers under a fiduciary standard of care.