From a press release issued by Sen. Mike Crapo (R-Idaho)…
Washington, D.C. – With economic questions ranging from obtaining credit to job creation, Republican members of the Senate Banking Committee are seeking Inspectors General (IG) reviews of the economic analyses performed by the regulatory agency charged with implementing the Dodd-Frank Act. The Senators note the rules adopted under the Dodd-Frank Act will have a long-term effect on economic growth; they will affect how consumers and businesses obtain credit, allocate capital, and manage risk. The request for the IG review follows a similar letter in February raising the concern that the regulators are sacrificing quality and fairness in exchange for speed.
On April 15, 2011, the Office of the Inspector General for the Commodity Futures Trading Commission (CFTC) issued an investigative report entitled “An Investigation Regarding the Cost-Benefit Analyses Performed by the Commodity Futures Trading Commission in Connection with Rulemakings Undertaken Pursuant to the Dodd-Frank Act.” The report found that:
Legal formalities trumped economic analysis in the rulemaking process. CFTC staff considered economic analysis to be merely an administrative task, rather than a substantive part of rulemaking. CFTC’s rulemaking process does not comply with the President’s Executive Order “Improving Regulation and Regulatory Review”. CFTC staff expressed “frustration” and “confusion” about the difference between cost-benefit analysis and the required Paperwork Reduction Act statement.