The 2,300-page Dodd-Frank act has overwhelmed the bureaucrats charged with its implementation, according to a new report.
The act required the government to perform studies of nearly 400 new financial rules. But bureaucrats have failed to complete two-thirds of the studies in a timely manner, according to financial law firm Davis Polk.
The Securities and Exchange Commission has missed 56 of its deadlines for 73 rules, while banking regulators missed 57 of their 73 deadlines. The Dodd-Frank bill has been hammered by financial insiders because of its vague guidelines, which leave businesses at the mercy of regulators.
The Economist likened the broad authority given to regulators by Dodd-Frank to the Hydra of Greek mythology, which “can grow new heads as needed.”
“Laws classically provide people with rules. Dodd-Frank is not directed at people. It is an outline directed at bureaucrats and it instructs them to make still more regulations and to create more bureaucracies,” Yale Law Prof. Jonathan Macey told the British magazine.