The General Accounting Office has issued a report on the progress of the regulatory agencies as they implement the Dodd-Frank Act financial reforms. It is a depressing read. Fewer than half of the 236 rules required by the act have been adopted. There are not even proposed rules that the public can read and comment on for almost a quarter of the required rulemakings. Congress set deadlines for implementation of about two-thirds of the required rules. The regulators missed 89% of those deadlines.
But the scorecard does not tell the whole story. Several of these missing rules are critical to protecting the financial system from another meltdown. The U.S. economy remains at peril because the regulatory process has not worked as it should. Consider that there are no final rules implementing bank leverage and risk-based capital restrictions in connection with the Basel international standards.