Don Lampe, a partner in Morrison & Foerster’s Financial Services Group, was quoted regarding the Hensarling Plan in the article, “Hensarling Plan Targets Banking Regulators’ Independence,” published by Bloomberg Law on November 29, 2016.
“The Republicans are going to need some Democratic support of Dodd-Frank reform,” Mr. Lampe said. “We expect the progressive Democrats to be very, very vocal in their opposition to this—perhaps even more vocal than they’ve been to date about Dodd-Frank reform.”
“There’s not an enormous amount that’s new in the bill,” Mr. Lampe said. The concept of congressional review of rulemaking, for instance, has been around more than a generation, he said. “I think that will prove controversial,” Mr. Lampe said. “I think there will be a lot more discussion. There are important separation of powers issues that will be debated and talked about.”
Mr. Lampe said cost-benefit analysis is controversial in that it can slow down rulemaking and that cost and benefit are in the eye of the beholder. Behind the reasoning for it is an expansion of the regulatory state, particularly surrounding financial services, that hasn’t been seen before to the same degree.
“I think what we’ve seen after the crisis is that rules have been put into place without cost-benefit, and we’ve seen that those bills have been very costly to the economy and not necessarily yielded the benefits that their proponents sought,” he said.