A congressional effort to put regulators under the microscope when they write new rules for Wall Street is gaining momentum, potentially creating new obstacles to the closer oversight of financial risk taking, the New York Times reported today. A bipartisan group of senators is working on a package of regulatory reform bills that most likely would include a measure to subject the Consumer Financial Protection Bureau, the Securities and Exchange Commission and other independent agencies to a heightened cost-benefit analysis and review process for major rules. Supporters say the legislation would bring rule-making standards for independent regulators closer in line with those for executive branch agencies, providing more consistency and transparency in the rule-making process. But critics, including top Democrats, warn that the legislation is instead intended to create additional burdens and delays, as well as make agency rules more vulnerable to legal challenges.
