Tarullo: Implementing Dodd-Frank 'Formidable’

Implementing Dodd-Frank is “a formidable task” and despite all that has been done, “there is still considerable work to do,” Federal Reserve Board governor Daniel K. Tarullo testified to Congress Tuesday.

“Hundreds” of Fed staffers are working on the “time-consuming process” of coordinating with other agencies on Dodd-Frank projects, Tarullo told the Senate Banking, Housing, and Urban Affairs Committee.

“We have issued 29 final rules, public notices, and reports already and we have another 13 rules underway,” he said. “All told, we expect the board will issue approximately 60 sets of rules and formal guidelines as part of its implementation efforts. We are working diligently to complete the remaining rules.”

Several goals, Tarullo said, include getting it right. “This means implementing the statute faithfully, in a manner that maximizes financial stability and other social benefits at the least cost to credit availability and economic growth,” he said. “To achieve this balance, we have assembled interdisciplinary teams for our significant rulemakings, bringing together economists, supervisors, legal staff, and other specialists to help develop sensible policy alternatives and to help avoid unintended consequences.”

Soliciting comments is another goal, to help make the “rulemaking process as fair and transparent as possible,” Tarullo said.

The Fed has “made special efforts to identify and, to the degree possible consistent with statutory requirements, minimize the regulatory burden on smaller entities,” he said.

Finally, the Fed is trying to “complete our Dodd-Frank projects as quickly as possible while meeting the three objectives already stated,” he said. “There is obviously considerable value in providing as much clarity as possible as soon as possible to financial markets and the public about the post-crisis financial regulatory landscape.”

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