[ by Melanie Gretchen ] SEC Inspector General H. David Kotz closed out his governmental career by issuing a critical report on the SEC's analyses of the economic impact of some of its Dodd-Frank rules.  Friday, 1/27, was his last day.  Mr. Kotz reports that, when it comes to developing and implementing  several Dodd-Frank Act rule-makings, "the SEC sometimes used multiple baselines in its cost-benefit analyses that were ambiguous or internally inconsistent." This finding is very relevant because, over the years, the agency has lost several court battles as a result of inadequate cost/benefit analyses relating to implementation of newly proposed rules and regulations.  Take, for example, this debacle which occurred last fall:

U.S. business groups won a a federal appeals court decision to overturn a new SEC that was mandated by the Dodd-Frank Act.  It was aimed at empowering shareholders to nominate directors to corporate boards more easily.  In its ruling, the court concluded ruled that the SEC failed to properly weigh the economic consequences. [Reuters, 1/27/12]

New Inspector General Named. On Friday, the SEC named an interim replacement for Mr. Kotz.  To read that story, go to [WHO'S NEWS, 1/30/12].