PEARCE VOTES TO HOLD REGULATORS ACCOUNTABLE

May 17, 2013 Issues: Economy and Jobs, Financial Services

Washington, DC (May 17, 2013) - Today, U.S. Congressman Steve Pearce voted for H.R. 1062, the SEC Regulatory Accountability Act.  The bill requires the Securities and Exchange Commission (SEC) to conduct a cost-benefit analysis for new regulations, and review new and existing regulations for their necessity and cost.

“Every day, the federal government implements new rules and regulations without ever knowing the full cost of those decisions,” said Pearce.  “Historically, rules the SEC has estimated would cost a company $90,000 to comply with have ended up costing millions.  Our already-struggling economy simply cannot afford such mismanagement.  A cost-benefit analysis is a commonsense approach to good business, and to good government.  And most importantly, it is a good way to protect American jobs.”

Congressman Pearce, who sits on the House Financial Services Committee, has met this year with many bankers, real estate professionals, and others in New Mexico’s financial industry to address the challenges facing the state’s economy.  Many local financial institutions have expressed their support of H.R. 1602.  “Congressman Pearce made the right move for New Mexico in supporting this legislation,” said Sam Spencer, President and CEO of Lea County State Bank in Hobbs.  “The SEC’s decisions effect the entire economy—right now, new regulations is forcing our compliance costs to skyrocket, hurting local banks, businesses, and individuals.  A cost-benefit analysis will force the federal government to consider these consequences before it acts, helping Americans from New York to Hobbs.”

Even the president has noted the importance of conducting cost-benefit analyses, asking other agencies to do so.  But the SEC—which has vast power to influence millions of investors, trillions of dollars, and countless American jobs—is currently exempt from these requirements.

Congressman Pearce is a cosponsor of H.R. 1062.