The regulatory agencies mishandled aspects of the Volcker Rule, according to recent essays by independent observers, who noted the rushed process of approval and lack of economic impact analysis.
Sam Batkins of the American Action Forum criticized the short time frame — six days — from the final draft to the agencies’ votes. “The regulatory agencies then took a perfunctory vote and the rule was final, all without a regulatory analysis examining the economic implications,” he wrote.
Hester Peirce, a fellow at the George Mason University-based Mercatus Center, added that the OCC’s economic analysis for the rule came three months after the rule’s adoption and was “rather thin” and “reliant on questionable economics.” The analysis suggested costs of as much as $4.3 billion associated with the rule.
Read Batkin’s essay.
Read Peirce’s essay.