It’s not looking good for Dodd-Frank and its once-promising mandates. Last week, The New York Times reported that the rulemaking process was badly bogged down, with 28 deadlines having been missed. The article read in part:
“There’s an attempt to kill this through delay,” said Michael Greenberger, a law professor at the University of Maryland and a former official at the Commodity Futures Trading Commission, which is in charge of writing batches of the rules. “The difference between eight or nine months and 24 months could be cataclysmic here.”
The setbacks and resistance extend across many types of new rules, including ones to limit the debit card fees that banks can charge retailers and to require banks to retain more of the risk in certain home loans.
But the efforts were especially apparent at a hearing last month in Washington related to derivatives. Some of the most powerful players in the derivatives market — which is closely controlled by just a small group of banks — argued that the government should allow a slow pace of changes for rewriting derivatives contracts.
Today, ProPublica is reporting still more delays:
There are yet more delays in implementing financial reform. The Commodity Futures Trading Commission has said it needs extra time to write a set of derivatives rules required by Dodd-Frank, and others that were scheduled to go into effect automatically next month may be deferred until the end of the year–leaving the multi-trillion-dollar market mostly unregulated for the time being. The agency is meeting today to hammer out the details of the delay.
And, of course, delays may turn out to be the least of our worries, with Senate Republicans still manouevering to repeal the bill or gut key provisions.