Speaker of the House Paul Ryan (R-Wis) has called for Washington to change the way it writes rules, including a vote by Congress before any major regulation becomes law. Ryan and a group of Republican leaders announced the next phase of their plans to grow the economy and reduce regulatory burdens in a white paper called "A Better Way to Grow Our Economy." The report suggests 101 solutions for improving the current regulatory approach, including an end to bailouts and a crackdown on lawsuit abuse. The plan also includes the framework of the Financial CHOICE Act, which Financial Services Committee Chair Jeb Hensarling (R-Tex) will introduce to replace the Dodd-Frank Act. The ideas were developed by the Task Force on Reducing Regulatory Burdens made up of nine House committee chairs.
Among the report’s ideas is to cut down on regulations and make current rules more efficient and effective. Ryan said the plan is to take control away from unelected bureaucrats and give it to the elected representatives of the people. The plan would prevent the federal government from regulating in areas where the states are already successfully doing so. Congress would have to approve all rules that would cost the economy more than $100 million a year. Ryan said one of the ideas is to limit the amount of regulatory costs an agency can impose in a single fiscal year. Agencies would be required to adopt the least costly method of implementing new regulations and would have to provide a full accounting of the costs and the cumulative impact of the rules.
Hensarling said the U.S. is losing one financial institution a day due to the regulatory burdens of the Dodd-Frank Act. The Republican’s plan will help keep the doors open for small banks and credit unions which are in big trouble across this country, he said. The Better Way plan points to the Consumer Financial Protection Bureau, which was created by the Dodd-Frank Act, as a notable example of a federal regulator run amok.
The Better Way plan also addresses the preservation of the Internet’s innovation; students and workers; and energy policy.
The U.S. Chamber of Commerce issued a news release following the announcement of the Better Way plan stating that it represents a valuable contribution to regulatory reform. The Chamber pledged its support in advancing Ryan’s regulatory reform efforts.
MainStory: TopStory CFPB DoddFrankAct
Interested in submitting an article?
Submit your information to us today!Learn More
Banking and Finance Law Daily: Breaking legal news at your fingertips
Sign up today for your free trial to this daily reporting service created by attorneys, for attorneys. Stay up to date on banking and finance legal matters with same-day coverage of breaking news, court decisions, legislation, and regulatory activity with easy access through email or mobile app.