Republicans appear to be succeeding at starving the beast after all, or at least some of the beast's spawn. By refusing to allow the omnibus spending bill to provide the government a new budget for next year, spending will instead mirror that of 2010. Of course, this year's budget didn't reflect all of the aggressive legislation passed by Democrats, including health care reform and the giant financial regulation package. Although more media focus has been on what this means for health care bill, the potential consequences to new financial regulation efforts are just as dire.
Pat Garofalo at ThinkProgress reports:
Under the omnibus, the Securities and Exchange Commission would have seen its budget increase to $1.3 billion from $1.1 billion, and the CFTC would have gone from $169 million to $286 million.
Already, the SEC has halted implementation of a variety of measures under the law as it waits for funding. Included in this halt are new regulations for credit rating agencies and an office for financial markets whistleblowers. The Commodity Futures and Trading Commission (which is charged with implementing the derivatives title of the bill) has said that its current funding level "is far less than what is required to properly fulfill our significantly expanded role." "The implementation of that good and historic law is in jeopardy if the CFTC doesn't have increased resources," Bart Chilton, a CFTC commissioner, has said.
And other new agencies, regulator divisions, or rules requiring appropriations funding
, like the Consumer Financial Protection Bureau* could also be in trouble.