Dodd Swings For The Fence With Bank-Reform Bill

Posted on November 11, 2009. Filed under: Uncategorized |

By Carl Chancellor

On the heels of the one year anniversary of the $700 billion bailout of Wall Street, Senate Banking Committee Chairman Christopher Dodd (D-Conn)  unveiled a banking reform bill that would create a super-regulator for banks, protect consumers and limit the fallout of a bank deemed “too big to fail.”  Click here to read Dodd’s bill.

In a word Dodd’s 1,136-page bill is –bold.

Introduced on Nov. 10, the bill would strip the Federal Reserve of much of its oversight authority and shift those responsibilities to three new agencies that would be charged with policing  banks, protecting consumers and dismantling failing financial institutions.

Dodd’s banking overhaul plan goes farther than both the plans being proposed by the Obama administration and the House.

“This is not the time for timidity,” said Dodd, who called the Fed’s record of protecting consumers and regulating bank holding companies “an abysmal failure.”

Dodd said his bill “will create a new architecture to make our financial institutions more transparent, more responsible and more accountable to the American people…It will address the problems of the past, and look forward to the needs of the future.”

According to the Associated Press, Dodd’s bill would:

  • Create a Consumer Financial Protection Agency to protect consumers using credit cards, taking out home loans as well as address predatory lending.
  •  Consolidate federal supervision of banks under a “Financial Institutions Regulatory Administration.”
  •  Abolish the Office of the Comptroller of the Currency and the Office of Thrift Supervision, and strip the Federal Deposit Insurance Corporation and the Fed of their bank supervision duties.
  •  Create an “Agency for Financial Stability” that would enforce new rules and dismantle complex financial firms if they threaten the broader economy.
  •  Regulate privately traded derivatives, hedge funds and other private pools of capital so that regulators have a sense of how much risk is being assumed by    financial firms.
  •  Impose new rules on investment rating agencies.
  •  Limit the Fed’s ability to provide emergency loans to mostly healthy institutions, instead of failing firms.

 The Senate Banking Committee is expected to begin voting on the measure and alternations to it during the first week of December.

Caren Turner, CEO of Turner Governmental Public Affairs, said Dodd’s bill moves the country “one step closer to much needed comprehensive financial reform.”

Advertisements

Make a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Liked it here?
Why not try sites on the blogroll...

%d bloggers like this: