Hensarling Rips White’s Wish for Last-Minute SEC Rules

Stay up-to-date with the latest developments in securities law through access to both news and all statutes and regulations. Find relevant corporate filings through a searchable EDGAR database. And...

By Rob Tricchinelli

Dec. 13 — Rep. Jeb Hensarling (R-Texas) lashed out at SEC Chairman Mary Jo White, a day after she said she would move ahead with rulemakings as her tenure winds down before President-elect Donald Trump takes office.

Top Senate Banking Committee Republicans asked White in November not to act on pending rules for the remainder of her tenure. That prompted her Dec. 12 response that the SEC typically continues work during post-election windows and she didn’t intend to change the “historical practice of independently carrying out [the SEC’s] duties.”

The response didn’t sit well with Hensarling, who chairs the House Financial Services Committee. “The press is characterizing Chair White’s decision to try to rush through a mountain of midnight regulations as ‘defying Republicans,’ but in reality she’s defying the will of the American people and good government,” he said in a Dec. 13 news release. “Such midnight rulemaking is neither conducive to sound policy nor consistent with the principles of democratic accountability.”

A representative for White declined to comment. White will leave the chairmanship Jan. 20. Under agency rules, all three current commissioners must be present for a rulemaking quorum, which could thwart White’s attempts to finish rules before she leaves.

Hensarling told White during a November hearing to hold off on rules until Trump gets sworn in. He warned then and in his news release that congressional Republicans in 2017 will review any late-adopted rules.

To contact the reporter on this story: Rob Tricchinelli in Washington at rtricchinelli@bna.com

To contact the editor responsible for this story: Phyllis Diamond at PDiamond@bna.com

Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.

Request Securities & Capital Markets on Bloomberg Law