The Essential Man
Big companies love regulation.
Powell: 'Essential' that bank regulators re-propose Basel plan
Big companies have plenty of resources to push back on regulation they don’t like.
‘Powell's comments confirm Reuters' reporting in June that regulators were split on how to proceed with the rule, with the Fed open to a re-proposal while the other two agencies opposed it, seeing it as an unnecessary step that could delay the project with a presidential election just months away.
‘Banks, which fiercely opposed the original proposal that would hike capital requirements for larger banks, have been calling for a re-proposal. Regulators have been working for months on revising the plan in a way that could significantly curtail the capital impact for larger firms.’
UN: Plundering, bureaucracy, and dwindling resources ‘impede’ Sudan aid
Bureaucracy is a luxury in the best of times; it is a sin in the worst of times. Bureaucracy hampers food aid in Sudan.
‘The International Food Security Phase Classification (IPC) said that around 755,000 people face (catastrophic) levels of hunger in Sudan, the highest levels ever recorded. Organisations attempting to reach people in dire need of aid in Sudan, almost half the population, are severely hampered by bureaucratic and security challenges.’
Statement on the Spring 2024 Regulatory Agenda
How much impact does public input actually have on proposed rule changes?
‘We benefit in all of our work from robust public input regarding proposed rule changes.’
Disconnected rules in a connected world: ideas for AI innovation and regulation
Global companies face global challenges in managing regulatory conflict. What do you do when the US says one thing and the EU says the opposite?
‘In stark contrast to the US, the EU has taken a more proactive and regulation-first approach to AI. The landmark EU Artificial Intelligence Act, opens new tab (AI Act), passed in 2024, establishes a comprehensive regulatory framework for AI systems. The AI Act classifies AI systems based on risk level, with stricter requirements for high-risk systems like facial recognition technology, and bans some others.’
Why the AI industry should want regulation now, not what could come later
Regulation in response to a crisis is always more comprehensive and intrusive than rules put into place during peacetime conditions.
‘She added that if the U.S. government stalls on implementing regulation now, the AI industry could see the same fate as areas like crypto and social media. An incident will happen and then Congress will quickly pass legislation that regulates the industry in way that could be overbearing or less thought out than what it could look like if it was implemented before something happened.’
Another prediction of litigation stemming from Chevron.
‘You now have a new weapon in your arsenal. All of a sudden, the universe of longstanding federal rules that are now vulnerable to attack in court has been expanded, giving your organization a potential new bite at the apple for an APA challenge that may not have previously existed.
‘And now that the Chevron doctrine has been eliminated and you have new arguments to make against federal rules and regulations, this decision will expand your ability to pursue such claims. With these two decisions, SCOTUS lowered the bar and then opened the door wider for you.’
House passes fridge, dishwasher bills to take a hatchet to Biden’s regulation regime
What is the point of making a rule that is neither cost-effective nor technologically feasible? It’s nothing more than a statement of intent. We have too many of those, as it is.
‘The Refrigerator Freedom Act and Stop Unaffordable Dishwasher Standards Act would prevent the Department of Energy from finalizing or enforcing efficiency standards on dishwashers and fridges that “are not cost-effective or technologically feasible.”’
Regulation Is Europe’s Key Leverage in Global Tech Industry
The dirty secret of regulation and bureaucracy (that we keep repeating) is that it acts as a significant barrier to entry for smaller competitors. It is incumbent protection. For some reasons, the political elite in many countries is biased against smaller business and in favor of the largest. Perhaps they want access to the success of the largest corporations. Or their money.
‘One likely reason for this difference can be attributed to the cost of compliance in Europe. Eighty-eight percent of global companies say that General Data Protection Regulation (GDPR) compliance alone costs their organization more than a million dollars each year, with 40 percent responding that they invest more than ten million dollars per year. High costs of compliance deter entrants into the market and prevent sizable growth from occurring.’