House Financial Services Committee Chairman Jeb Hensarling (R-Texas) and Rep. Scott Garrett (R-N.J.) asked SEC Chair Mary Jo White why the agency did not conduct an economic analysis prior to finalizing the Volcker Rule.
“The liquidity and depth of the corporate bond market -- where thousands of U.S. businesses that create millions of jobs go to raise funds -- will likely by adversely impacted by the Volcker Rule,” Hensarling and Garrett said. “As a result, U.S. capital markets used by businesses and investors to hedge their exposures could see wider spreads and decreased liquidity thereby increasing business risk.”
The lawmakers requested by Jan. 24 a justification from White for not conducting an economic analysis.
Read the letter.