As part of the Financial Reform Bill, the Senate Banking Committee is currently working on legislation which could create a standalone “Consumer Financial Protection Agency”. The creation of the agency is in response to the recent financial disasters including sub-prime mortgages and other financial instruments, which escaped government regulation, as well as the failure of several large financial institutions and the subsequent federal bailouts of these institutions. Another disputed topic is the amount of control that shareholders should have over executive pay. Additionally, President Obama has asked that the bill limit bank’s proprietary trading, refuse bank access to the hedge fund business, and limit bank growth. Some critics of the bill had previously expressed concern that the proposed agency would over regulate the Securities and Exchange Commission. However, Senator Bob Corker (R-Tenn), a member of the committee expressed optimism that the bill would receive Republican support. Senate Banking Chairman Christopher Dodd (D-Conn) also expressed encouragement about collaboration between Democrats and Republicans on the bill.
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