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Fall 2013
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ON POINT

U.S. Chamber of Commerce receives cost-benefit analysis of regulation

The U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness (CCMC) released a report written by Moritz College of Law professors Paul Rose and Christopher J. Walker titled “The Importance of Cost-Benefit Analysis in Financial Regulation.” They found that while regulators sometimes fail to use cost-benefit analyses appropriately, financial regulation grounded in rigorous, transparent, analytical standards is not only more efficient and effective, but is required by law.

“Financial regulators, especially in the context of Dodd-Frank, can and should ground their rulemaking in robust cost-benefit analysis in order to arrive at more rational decision-making and efficient regulatory action as well as to promote good governance and democratic accountability,” Rose and Walker wrote in the report. “The SEC’s experience with cost-benefit analysis, both in court and also in practice, provides an important lesson for other financial regulators.”

The report recommends that all financial regulators should use a broader and wider application of cost-benefit analyses to better protect consumers and investors while promoting more efficient markets. Rose and Walker are both fellows with the Law and Capital Markets @ Ohio State program, which aims to further the study of capital markets and corporate law, to enhance their regulation and operation.

Rose and Walker presented their findings to the CCMC in March at an event held in Washington, D.C. Since its inception in 2007, the center has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems that have governed our capital markets, working aggressively with the administration, Congress, and global leaders to implement reforms.

Posted in: Fall 2013, On Point