More Regulations Coming for Financial Services Companies as a Result of the Senate’s “Nuclear Option” Rules Change
Financial Services and Energy Sectors Likely to See Additional Regulations in 2014
Harry Reid, (D) Nevada and the Democratic Senate, facing an almost certain backlash from voters just 12 months from now over the dismal rollout and broken promises of Obamacare, took the drastic and historic step recently to invoke the so called “Nuclear Option” and change the rules of the Senate relating to the filibuster, further reducing the power of the minority party. In justification of this move, the majority leader, made statements to the fact that Republicans were holding up judicial nominations, when a quick review of the number of approved and blocked judicial nominations by the Senate during the Obama administration seems to clearly belie the Senator’s objections.
While the argument seems to be about judicial appointments in general, upon closer inspection, it appears to merely relate to three specific judicial appointments to the US Court of Appeals for the District of Columbia Circuit. This little known DC circuit court is one of the most powerful courts in the nation, and has been the court that has heard cases relating to President Obama’s use of recess appointments like that of CFPB Director Richard Cordray, EPA Regulations and numerous issues relating to the Affordable Care Act. With the President facing a crisis of trust and confidence, his monumental healthcare law on life support, and the prospect of losing control of the upper house of congress next year, Democrats seem to be taking a “Scorched Earth” approach to preserving a legacy for President Obama by stacking the DC Circuit Court of Appeals with some of the most radical, left leaning judges possible in hopes of defending the President’s policies from the mounting judicial challenges looming on the horizon.
The President has made no effort to conceal the fact that if he can’t get his legislative agenda passed by a gridlocked congress through normal order, he is just as happy to make an end run around the legislative branch to ram it down the throats of the republicans and the American people through the use of such controversial executive actions as recess appointments (when the Senate is actually not in recess) and executive orders in order to implement sweeping regulations. With the DC circuit court of appeals soon to be tightly packed with liberal judges sympathetic to President Obama, the Democrats and the President have set up a backstop against any challenges to Obamacare, his past or future executive orders and his agency and judicial appointments.
Now, with congress effectively muzzled and that pesky constitution out of the way, he is free to enact regulations by executive order and appoint the most radical agency personnel to carry out his agenda. So what does this mean for the financial services and energy sectors in the coming three years? Yes…remember, Obama is in power until January 2017. So if you thought the past three years of CFPB rule making, implementation and enforcement actions have taken a toll on the ARM industry, well, you ain’t seen nothin’ yet! With the DC Circuit court now firmly in the President’s pocket, you can expect much more of the same in the coming years. Hang On!
Lighthouse Consulting has been providing solutions to operational compliance challenges for ARM companies for over a decade. Contact Phillip Duff, CEO of Lighthouse Consulting today and let us help you navigate the compliance landscape.
Phillip Duff, CEO | www.LighthouseConsultingInc.com | Phil@LighthouseConsultingInc.com | (904) 687-1687