Republican and Democratic lawmakers on Tuesday clashed over the future of the Dodd-Frank financial reform law with conservatives charging that the outgoing chief of the nation's securities watchdog may be rushing to adopt yet-to-be-finalized rules based on the statute -- including an executive pay clawback measure -- before the Trump Administration takes over in January.
"Absent an emergency and given your current reputation and legacy, I would strongly urge you to respect the results of last week's election and resist the temptation to finalize any regulations," House Financial Services Committee Chairman Jeb Hensarling, R-Texas, told outgoing Securities and Exchange Commission chief Mary Jo White at her final hearing before the committee, which has jurisdiction over banking issues.
Hensarling's comments were echoed by other Republicans - and they come as the SEC is set Tuesday afternoon to adopt a rule to create a so-called "consolidated audit trail," a tagging and data collection system that would help the agency track information about trading orders so it can better understand the fast-paced markets. The proposal, along with a few others, has been stagnating at the SEC for several years.
White announced Monday, not surprisingly, that she will step down at the end of the Obama administration. She pushed back on assertions that the agency is rushing to adopt rules before the Trump Administration takes over. However, she also said that it is a priority of the agency over the next two months is to adopt a few rules, including one that would allow more investors to receive mutual fund reports electronically. "Why don't you just withdraw that rule?" asked Rep. Bruce Poliquin, R-Maine, about the mutual fund measure.