SEC Hires More Economists to Ensure Good Cost-Benefit Analysis

The House Committee on Oversight and Government Reform held a hearing today, "The SEC’s Aversion to Cost-Benefit Analysis." This continues the criticism of the SEC for its hurried approach to rulemaking; last July, a rule was overturned for inadequate cost-benefit analysis. In the hearing, Chairman Schapiro commented on the efforts the SEC is making to avoid overturned rules in the future. She highlighted the hiring of 17 new PhD economists as a part of the agencies renewed focus on the importance of economic analysis. The SEC also plans to get early input from its Division of Risk, Strategy, and Financial Innovation.

See the hearing materials and view an archived video.