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Dodd’s Financial Rules Bill Dilutes Obama Plan to

06:04, 1969-Dec-31 .. 0 comments .. Link

Dodd’s Financial Rules Bill Dilutes Obama Plan to Seek Support Dodd’s Financial Rules Bill Dilutes Obama Plan to Seek Support Senate Banking CommitteeSafety barricades Chairman Christopher Dodd’s plan for the biggest Wall Street regulatory overhaul since the 1930s drops provisions he sought in November and dilutes others as he seeks bipartisan support.#x

The measure shelves a single regulator that would have stripped the Federal Reserve and Federal Deposit Insurance Corp. of bank-supervision roles,中小企业国际市场开拓资金, and a plan to hold brokers to the same fiduciary standard as investment advisers. Dodd’s plan for an independent consumer protection agency becomes a unit within the Fed and the so-called Volcker Rule to limit risky trading by banks would be introduced only after a period of study.

The Connecticut Democrat’s bill, based on a proposal by President Barack Obama last June, lets regulators oversee over- the-counter derivatives, forces hedge funds bigger than $100 million to register with the Securities and Exchange Commission and empowers the Fed to force large firms to break up if they pose a “grave threat” to the economy. Some critics said it didn’t go far enough.

“I don’t see this legislation as so momentous that it’s going to halt the financial services industry in its tracks,” Safety barricadessaid Gilbert Schwartz, a former Federal Reserve attorney and a partner at law firm Schwartz & Ballen LLP in Washington. “It has a lot of the same provisions that we’ve already seen. #xIt’s more of a ho-hum proposal.”

Financial shares in the Standard & Poor’s 500 Index recovered most of a 1.1 percent slide yesterday after Dodd outlined his financial regulatory-reform plan.

‘Political Posturing’

The legislative draft is a version of Dodd’s November proposal, which was panned by Senate Republicans as too far out of line to even negotiate. No Republicans signed on in support of the draft yesterday and many will probably oppose the bill when it reaches committee consideration next week.#x

“This bill does nothing to change the expectations in the market that some firms are too big to fail,” said Senator David Vitter, a Louisiana Republican who serves on the Banking Committee. “I’m disappointed that Senator Dodd has decided to abandon any sort of bipartisan approach in favor of political posturing on behalf of the Obama administration.”

Dodd’s draft shrinks the number of holding companies the Fed oversees and moves its state-bank supervision powers to the FDIC.Safety barricades This plan is more in line with the overhaul legislation the House of Representatives approved in December. 相关的主题文章：