Dodd Frank Implementation Drags On

This past week the U.S. Government Accountability Office  (“GAO”) issued their scorecard for implementation of Dodd Frank.  Any surprise that they found that more than half of the rules related to the legislation are yet to be finalized?  In fact, a large percentage of the “proposed rules” for many provisions of the law are still waiting to be written.  They are even critical of the feasibility of some of the rules that have been written and adopted.

From the report…….

“As of December 2012, regulators had finalized rules for a little less than half of the 236 required rulemakings and other key rulemakings that we identified. The remaining required rulemakings and other key rulemakings have not been finalized or have yet to be proposed. Additionally, of the 236 provisions we identified, over two-thirds (157) required regulators to take action by a specific date. Among the provisions with deadlines that passed as of December 2012 (a total of 134 provisions), regulators had missed the act’s deadlines for the majority (119, or 89 percent) of the provisions.”

One particularly troubling finding is the lack of any apparent improvement in what is the inter-tangled mess that is process of coordination among the several Government regulators tasked with implementation of the law.

“Although regulators have established mechanisms to facilitate coordination and believe coordination efforts have improved the quality of the rulemakings, several regulators indicated that coordination increased the amount of time needed to finalize rulemakings.”

All in all, not a good a good sign for those hoping for improvement in momentum for both finalization  and a common sense implementation of the new rules.  Hopefully, this becomes more of a priority for the Obama Administration in the coming months.  Otherwise, we fear that we may still be writing about this topic during the next  Presidential Inaugural Week.

Click through below for a full copy of the GAO report.

http://www.gao.gov/assets/660/651401.pdf 

About markferraris
Managing Principal Orchard Street Partners LLC

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