Editor’s Note: The complete Working Paper, Economic Analysis by Federal Financial Regulators, is attached here.
From: Mercatus Center/George Mason University
By Hester Peirce
The Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) gave U.S. financial regulators a long list of regulations to write. Despite the sweeping nature of the Dodd-Frank changes, Dodd-Frank does not generally require regulators to conduct economic analysis. Further, most of the regulators charged with implementing Dodd-Frank are not subject to the standard regulatory analysis requirements for government rulemaking. Economic analysis can play a valuable role in assisting regulators in deciding whether and how to regulate, but very few financial regulators take advantage of this tool of their own volition.