August 8, 2011
By Commissioner Scott D. O’Malia
Regarding your editorial "The Cost of Lisa Jackson" (Aug. 3): As a commissioner of the Commodity Futures Trading Commission, I have consistently urged the CFTC to engage in more rigorous, quantitative analyses of the costs and benefits of our over 50 proposed rule makings and 14 final ones under the Dodd-Frank Act.
With respect to our proposed rule makings, our own inspector general has called into question the quality of the cost-benefit analyses. Nevertheless, during the course of final rule makings, I have continued to see indications that the CFTC intends to persist with a one-size-fits-all, qualitative approach. This approach contradicts two recent executive orders from President Obama and justifiably renders our rule makings vulnerable to legal challenge. For example, the D.C. Circuit just vacated a rule making by our sister regulator, the Securities and Exchange Commission, due to inadequacies in the cost-benefit analysis. If CFTC rule makings become subject to litigation, the markets will most certainly face years of uncertainty.
Read the full Letter to the Editor in the Wall Street Journal.
Last Updated: August 16, 2011