In a letter sent to Treasury Secretary Tim Geithner, Sen. Orrin Hatch (R-Utah), ranking member of the Senate Finance Committee, urges the Treasury to delay Dodd-Frank implementation, citing reasons of international concern and consistency.
The letter, which Sen. Hatch posted on The Hill‘s “Congress Blog,” states “a lack of due diligence in the implementation of Dodd-Frank will result in unduly burdensome regulations that will undermine the competitiveness of our domestic financial industry, putting our nation at odds with our trading partners and placing further strain on an already stressed corporate tax structure.”
Sen. Hatch also cites a recent report from analysts at the British investment branch of JPMorgan Chase, which highlight the anti-competitive impact of Dodd-Frank regulations.
“It is critical that the Committee receive updates as to whether our trading partners and international financial organizations are enacting reforms consistent with our interests, particularly given that many individuals indicate that aspects of the Dodd-Frank Act closely align with ongoing efforts of G-20 nations,” the letter states.
Finally, Sen. Hatch presents a series of questions to Secretary Geithner, for which he requests answers by April 28:
1) Have formalized consultations occurred with G-20 nations regarding implementation of provisions and principles included in the Dodd-Frank Act, including the Volcker rule?
2) Whether any provisions of the Dodd-Frank Act are unlikely to become part of the international financial regulatory framework, and reasons why.
3) Information as to whether the administration believes that failure of G-20 nations to adopt similar provisions to the Dodd-Frank Act will place US financial institutions at a competitive disadvantage with their foreign competitors.
4) Details on any action the administration has undertaken in furtherance of the International Policy Coordination section of the Dodd-Frank Act.
5) Dates which the administration believes G-20 nations will formally adopt and implement provisions akin to the Volcker rule.
See Sen. Hatch’s letter.
Written by Elizabeth Ecker