Tag Archives: Dodd-Frank bill

House moves the goalpost to the summer on Dodd-Frank overhaul vote

From the  Wall Street Journal article:

Rep. Patrick McHenry (R., N.C.) said financial regulatory policy could make it to the House floor “when it is warm out…perhaps June, July would be my hope.” The vice chairman of the House Financial Services Committee and Republicans’ chief deputy whip in the House was speaking in an interview with WSJ Pro Financial Regulation.

Warren, Warner, Cummings Introduce Legislation to Improve Federal Oversight of Risky Derivatives Trading and to Protect Taxpayers

Sen. Warren have endorsed Hillary Clinton for President and joined her on the campaign trail recently, but, she continues her fights for tough Wall Street reform.

JUN 29, 2016

Fact Sheet
Bill Text

Washington, DC – Today, United States Senators Elizabeth Warren (D-Mass.) and Mark Warner (D-Va.), and Congressman Elijah Cummings (D-Md.), Ranking Member of the House Committee on Oversight and Government Reform, introduced the Derivatives Oversight and Taxpayer Protection Act to strengthen federal oversight of the multi-trillion dollar derivatives market and to ensure that big financial firms – not taxpayers – are on the hook for derivatives losses.  The Financial Crisis Inquiry Commission found that derivatives were at the center of the storm in the 2008 financial crisis.  A glaring lack of federal oversight of derivatives allowed firms to build up massive levels of leverage and risk, setting the stage for the crisis and forcing taxpayers to spend hundreds of billions of dollars on bailouts.

The Dodd-Frank Act sought to fix these problems, but thanks in part to Republican obstruction in Congress and weak rules from the Commodity Futures Trading Commission (CFTC), much more needs to be done to oversee derivatives, close up loopholes in existing rules, and force private firms to bear the full risk of their derivative positions.

“The only way to make sure that derivatives can never lead to a financial crisis and taxpayer bailouts again is to put in place clearer rules and stronger oversight,”Senator Warren said. “Otherwise, big financial firms will be able to rake in billions when things go well, then come back to taxpayers with their hands out when things come crashing down.  That might be just fine for Republicans and their allies on Wall Street, but Democrats are standing together to make sure that never happens again.”

“Reckless derivatives trading at AIG helped precipitate the global financial crisis of 2008 and usher in the Great Recession.  That is why Congress required stricter capital, margin, and clearing requirements for derivatives activities in Dodd-Frank.  This bill builds on our financial reform efforts by improving transparency, closing gaps in regulatory oversight, and giving CFTC resources adequate to accomplish these goals,” said Senator Warner, Ranking Member of the Senate Banking Subcommittee on Securities, Insurance & Investment.

Read more from Senator Warren website. Click here.

Sen. Elizabeth Warren: Top House GOPer “Sprinting Toward Trump Towers” With Dodd-Frank Repeal

The highest ranking Congressman overseeing banking regulation met with Donald Trump in New York on Tuesday, after unveiling a plan to repeal much of Dodd-Frank.

House Financial Services Committee Chair Jeb Hensarling (R-Texas) declined to go into the gritty details when asked about the meeting on Fox Business Channel. He said Trump “well-received the message” and is “interested in the policy.”

“I’m not going to go into the blow-by-blow,” he said.

Hensarling, who endorsed Sen. Ted Cruz (R-Texas) in the primary and is backing Trump in the general election, said he disagreed with many of the nominee’s statements. He wholeheartedly agreed with host Stuart Varney’s assertion, that Trump represents the country’s “only hope” of repealing Dodd-Frank.

Hensarling’s initiative would exempt banks from Dodd-Frank rules if they agreed to hold more cash in reserves, according to Reuters. It would also repeal the Volcker Rule, which prohibits banks from financing speculative trades with federally-insured consumer deposits.

Read on.

Trump bashes Dodd-Frank and dismantle most of the bill, says he’d speak to N. Korea’s Kim

Trump will not win over supporters of Sanders and Clinton to vote for him if he is touches the Dodd-Frank bill and good luck speaking with the North Korean leader and that’s if the leader wants to speak with Trump…


The presumptive Republican nominee declined to share details of his plans to deal with North Korea, but a meeting with Kim would mark a major shift in U.S. policy towards the isolated nation.

“I would speak to him, I would have no problem speaking to him,” Trump said of Kim.


Turning to the economy, Trump said he planned to release a detailed policy platform in two weeks. He said it would dismantle nearly all of Dodd-Frank, a package of financial reforms put in place after the 2007-2008 financial crisis.

“I would say it’ll be close to a dismantling of Dodd-Frank. Dodd-Frank is a very negative force, which has developed a very bad name,” Trump said.

The New York billionaire also said he perceived a dangerous financial bubble within the tech startup industry. He said tech companies were attaining high valuations without ever making money.

Trump also said he eventually wants a Republican to head the U.S. Federal Reserve, but said he is “not an enemy” of current chair Janet Yellen.


Politics nothing to do with curbing big banks: Fed’s Kashkari

The newest Federal Reserve policymaker dismissed concerns that his call for radical action to rein in “too big to fail” banks was a partisan move, and instead said on Wednesday it highlighted the U.S. central bank’s independence from politics.

Minneapolis Fed President Neel Kashkari, a Republican and former Treasury official under the Bush and Obama administrations, said on Tuesday existing rules to protect taxpayers and the economy from a bank failure fall short, and he urged Congress to consider breaking up massive banks.

The call for action seven years after the worst of the financial crisis touched a nerve among bankers and on the combative presidential election campaign, where both Democrats and Republicans have hammered Wall Street greed and criticized regulations as having fallen short.

Read on.

House GOP Rams Through 2 New Deregulation Bills

WASHINGTON — House Republicans pushed through two bills this week designed to undermine key environmental and financial regulations by jamming federal courts with lawsuits.

The first bill, passed Wednesday, rejuvenates the Unfunded Mandates Reform Act of 1995, shepherded through Congress by then-House Speaker Newt Gingrich (R-Ga.). The 20-year-old legislation imposed a host of cost-benefit standards on federal regulators, including a requirement that they consider the costs that new rules might impose on state and local governments. Wednesday’s GOP bill adds a new dimension to that law by allowing those detailed regulatory calculations to be challenged in federal court — opening every stage of analysis to litigation that may make it nearly impossible for agencies to write and implement rules.

The bill is funded by a $32 million cut to the Consumer Financial Protection Bureau — the agency created by President Barack Obama’s 2010 Wall Street reform bill to crack down on predatory lending, mortgage abuses and unscrupulous credit card companies .

Read on.

GOP to Warren: That Dodd-Frank Rollback Was Just the Appetizer

Memo to GOP and Yoder: You just declared war on Main Street and not just on Senator Warren!

The Republican sponsor of a measure easing a bank regulation is planning to pick new fights in 2015.

Representative Kevin Yoder, who spearheaded this week’s changes to the Dodd-Frank financial law’s regulation of swaps transactions, has a message for Senator Elizabeth Warren: expect more pro-business changes in next year’s spending bills.

“We have a created a model,” the Kansas Republican said in a telephone interview with Bloomberg Government’s Congress Tracker. “This bipartisan success shows a pathway to solving other issues in the financial services area.” The Yoder provision, inserted into the 2015 omnibus spending bill, will allow some companies to forgo spinning off their swaps activities to non-bank affiliates, and maintain access to federal assistance.

The hardball tactic of attaching Dodd-Frank language into an urgent spending bill could be replicated when the fiscal year ends and lawmakers again will be trying to get government funding in place by Oct. 1 to avoid a shutdown. Among other changes, Yoder wants to block funding for a U.S. Securities and Exchange Commission planned regulation to protect pension funds from getting investment guidance from financial advisers with conflicts of interest.

Read on.

Senate Banking Panel to Host Wall Street Reform Hearing Next Week

U.S. regulators, closing in on their mandate to force financial firms to prove they can weather another credit crisis, are set today to finish two key rules governing the banks’ balance sheets.

The Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. are ready to issue a mandate that banks set aside enough easy-to-sell assets to survive a 30-day liquidity drought and wrap up rules on how much loss-absorbing capital must be held against total assets.

Ahead of a hearing next week before U.S. senators, who will ask about their progress on rules related to the Dodd-Frank Act, regulators are piling up a stack of fresh work. The latest actions include another rule today dealing with swap margins and one yesterday scrutinizing how banks aremanaging risk.

Read on.

State Attorneys General Bringing Actions Under Dodd-Frank

As the CFPB celebrates its three-year anniversary, the current trend appears to be lawsuits brought by state attorneys general or state regulators pursuant to their authority under Dodd-Frank Section 1042. Under Section 1042, a state regulator or attorney general is authorized to bring a civil action for a violation of the Dodd-Frank prohibition of unfair, deceptive or abusive acts or practices (UDAAP). Recently lawsuits have been filed by state attorneys general in three different states: Illinois, New York and Mississippi.

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Insurers find Dodd-Frank law loophole

According to an article in The Wall Street Journal, a slight quirk in the text of Dodd-Frank may make life easier for some of the biggest U.S. insurers.

They argue the Federal Reserve should look to state-insurance rules to craft capital requirements for insurers designated as systemically important financial institutions. That task is complicated by the fact that state rules rely heavily on third-party credit ratings, while the Dodd-Frank Act ordered all federal regulators to strip ratings from their rules.

In this case, the devil is very much in the Dodd-Frank details. The language of the financial-overhaul law doesn’t actually contain a prohibition on rules relying on credit ratings. Rather, one section, 939A, instructed federal agencies to do three things.

Source: WSJ