U.S. Chamber Calls for Re-Proposal and Delay of Volcker Rule
‘We Need Fundamental Fairness and an Evenhanded Process to Establish Clarity for Businesses to Grow and Create Jobs,’ Hirschmann Says
WASHINGTON D.C.—In a letter sent today to the Federal Deposit Insurance Corporation (FDIC), Federal Reserve, Securities and Exchange Commission (SEC), and Office of the Comptroller of the Currency (OCC), the U.S. Chamber of Commerce called on the agencies to withdraw and re-propose the Volcker Rule when all agencies – including the Commodity Futures Trading Commission (CFTC) – join together in a joint rulemaking. The CFTC is currently in the midst of ongoing deliberations to finalize its position on implementation of the Volcker Rule. The Chamber also called for a 150-day comment period.
“On any day the Volcker Rule is the poster child of regulatory complexity. However, the lack of regulatory coordination and truncated comment period raises serious process questions and issues of fundamental fairness,” said David Hirschmann, president and CEO of the U.S. Chamber’s Center for Capital Markets. “Without input from the CFTC, there is no coordination among the agencies, and non-financial companies are left playing a guessing game as to how to comply with the Volcker Rule. Until the regulators get on the same page, it is impossible for businesses to offer suggestions as to how to improve the rule. The Administrative Procedures Act creates standards for transparency and fairness. America’s job creators can’t afford the Volcker rulemaking to turn into the latest episode of Press Your Luck.”
The enormity of the task of weighing in on the proposal is reflected in the complexity of the proposed rule, which includes 400 major questions that with various subparts stretch out to more than 1,000 questions. Implementation of the rule could also have wide-ranging impacts upon the capital formation and liquidity needed by businesses for daily operations and growth. The Volcker Rule was published in the Federal Register on November 7, 2011 and the comment period closes on January 13, 2012. Other less complex rules, such as Coast Guard regulations for passenger vessels under 100 tons, spanned 150 days.
“If America wants to maintain its place as the premier global capital markets, then we need to hit the reset button on this proposal,” said Hirschmann. “Stakeholders can’t even determine if they fall under the Volcker Rule, much less than how to comply with it. We hope the regulators will take note and re-propose a rule in a way that seeks meaningful comments so that we can work to get this right and not rush at the expense of America’s economy.”
Since its inception three years ago, the Center for Capital Markets Competitiveness has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems that have governed our capital markets. The CCMC is committed to working aggressively with the administration, Congress, and global leaders to implement reforms to strengthen the economy, restore investor confidence, and ensure well-functioning capital markets.
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.