By Peter Schroeder - 07/02/12 04:49 PM EDT
Nearly two years since it was made law, nearly 36 percent of the roughly 400 rules required by the Dodd-Frank financial reform law have yet to be written, according to a new report.
According to the law firm Davis Polk, regulators have finalized just 30 percent of the rules required by the sweeping overhaul, while 34 percent of those required have been proposed. President Obama signed the Wall Street reform into law on July 21, 2010.
However, the firm found that regulators are already missing a large number of the deadlines that have come and gone. Of the 221 deadlines that have passed, regulators missed 63 percent of them, and only 37 percent of them have been met with finalized rules.
Years after Dodd-Frank was signed into law, it remains a contentious topic both on Capitol Hill and Wall Street. Banks and financial institutions have mounted intense lobbying efforts to sway regulators or delay rules on key provisions of the law, which they contend, if implemented poorly, could stifle the financial sector and the broad economy.
Meanwhile, some of the regulators have also had to take on the weighty law without the budget boosts requested by the president. The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) were both charged with implementing large pieces of the law, but have not received the hundreds of millions in additional funding requested by the White House. Instead Republican appropriators have pushed leaner budgets for the agencies, even proposing cuts to the CFTC's budget — a move met by loud objections from Democrats supportive of the law.
Bank regulators have had the most trouble meeting regulatory deadlines, according to the firm. Of the 73 deadlines that have passed by on new banking rules, regulators have failed to produce finalized rules 73 percent of the time. The SEC also struggled, missing 71 percent of its deadlines.
In comparison, the CFTC has performed relatively well, meeting 68 percent of its deadlines with finalized rules.