By Sarah N. Lynch and Christopher Doering
WASHINGTON - U.S. regulators are scrambling to bulletproof dozens of financial reforms after a court last month tossed out an important part of the Dodd-Frank financial oversight law.
The federal appeals court ruling faulted the Securities and Exchange Commission for conducting a flawed economic analysis to support a rule to make it easier for shareholders to nominate directors to corporate boards, a process called "proxy access."
The ruling sent shivers down the spines of the SEC and Commodity Futures Trading Commission, and has them bracing for more court challenges as they strain to complete well over 100 rules called for in Dodd-Frank that was enacted last year.
"I was afraid of this all along," said Jill Sommers, a Republican commissioner at the CFTC. "The SEC had a rule that was challenged on grounds that I think there are concerns in our rules about, and I feel like we could equally have the same kind of challenges."
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