Key Details Released On Dodd's Financial Reform Bill

Several much-anticipated details of Sen. Chris Dodd's (D - Conn.) financial reform bill have been revealed, The New York Times and the Wall Street Journal report this morning.

After weeks of negotiations broke down last week with Republicans, Dodd is expected to introduce his own financial reform bill on Monday afternoon, a decision that shocked some groups pushing for reform. Though the full bill will likely be released Monday, the NYT and the WSJ have some key details (which are also neatly summarized by Calculated Risk.)

"The biggest winner," the WSJ notes, seems to be the Federal Reserve, which would house the proposed Consumer Financial Protection Agency. Under the bill, the CFPA would have rule-making authority and would be led by a director appointed by the president.

(For more on the details on Dodd's version of the CFPA, see our latest report here.)

The Fed, under the Dodd bill, would also reportedly be responsible for overseeing any financial institution with assets of more than $50 billion. This amounts to something of a coup for the Fed, the WSJ points out: "Only a week ago, [Senate negotiators] had thought the Fed would only be able to examine roughly two dozen banks, those that held more than $100 billion in assets."

The bill also calls for a new systemic risk council that would be headed by Treasury Department and include "representatives of the Fed, the new consumer agency, the FDIC, the Securities and Exchange Commission, the Commodity Futures Trading Commission and the Federal Housing Finance Agency -- along with an official appointed to monitor the insurance industry, which is largely regulated by the states," the NYT reports.

And though the new CFPA would have rule-making authority under the Dodd bill, its decisions could be "overturned by a two-thirds vote of the new systemic risk council, or 6 of the 8 members," according to the NYT.

Read the full piece at the NYT here -- and check out the WSJ's piece here.

Comments

[google me]

01:51 PM on 04/24/2010

i know after reading this that the Federal Reserve conspiracy nuts would be commenting and I was right. ridiculous

[enduroman]

07:04 AM on 05/01/2010

You must be Alan Greenspan!!

[lastams]

09:55 AM on 04/23/2010

Here's a great picture of the day that the foxes were given the henhouse:

http://www.ratical.org/corporations/DErulesUD.html

...and no one is even suggesting booting them out.

[pjwrites]

02:14 PM on 04/02/2010

Let me guess without even reading the article: a whole lotta nothin' goin' on? More of that "fox guarding the hen house" logic?

It's pathetic, but I'm quite sure I'm right.

[PotomacOracle]

10:55 PM on 03/22/2010

The Fed runs every facet of the American economy, owns our politicians, and ultimately, controls the fate of every citizen.

This is so because the Fed controls all of the levers which determine the supply of our medium of exchange (credit/money/cash/debt) in this society.

What other "THING" competes with credit as the lubricant which allows this nation to function????

Who controls the Fed? Not a President. Not a Congress. Not a Supreme Court. Not a National Citizenry.

It's major acolytes, large TBTF banks, major sectoral oligopolies and monopolies are co-conspirators in the "one world currency scheme." This scheme involves nothing less than deliverance of 99.9% of Americans, as indentured servants to the world's Central Bankers at the BIS and IMF.

This scheme is supported by elite figures such as CFR member Jeffrey Garten and Timothy Geithner, then, president of the Federal Reserve Bank of New York, who in 2007, called for a “new global monetary authority”, a de-facto global financial dictatorship, operating across borders and forcing nations and corporations to register and adhere to strict monitoring and regulations. All the while going deeper and deeper into national debt to the Global Central Bank.

http://www.prisonplanet.com/two-faced-geithner-assures-cfr-puppet-masters-hes-open-to-global-currency.html

Who dare to speak out against this fraud????

[TheRLeePost]

12:58 PM on 03/15/2010

I'll reiterate what was implied in an earlier comment.

The Federal Reserve Board is NOT the appropriate place for this agency. Though its Director/Head would be appointed by the President, it is most likely that each President will both seek, and be swayed by, advice from the Fed Board on who to appoint to that post. That is NOT GOOD.

We've already seen that Wall Street holds an inordinate amount of influence over who sits on and heads the Board of Governors of the Federal Reserve. Even after a classically abysmal performance by the current Fed Chair, all that Wall Street had to do was frown at the suggestion that the current Fed Chair be replaced. That 'Boo' by Wall Street was enough to frighten the financially naive politicians.

It is a bad move indeed, and should be protested vigorously.

-RLee
http://therleepost.blogspot.com

[bmull]

07:18 AM on 03/15/2010

So, who's going to recognize and break up TBTF banks? An eight agency council? Can you imagine Goldman going up against an eight agency council? Goldman would run circles around them.

[PatrickJ08]

10:40 PM on 03/14/2010

3 negative comments so far.

Does this mean the status quo is preferred?
Or a weaker bill compromising with repubs is preferred?

[mcartri]

10:20 PM on 03/14/2010

Senator Lobbyist today & private citizen lobbyist tomorrow.

[hibeam]

02:21 PM on 03/14/2010

It’s a sad comment on our political system that this crook is in charge of financial reform. He should be in charge of making license plates each day.

[Troubledwawa]

02:03 PM on 03/14/2010

The CFPA under the Fed? Yeah right Dodd. I see he is still aiming to please his wall street masters every wish.

I'll stick with the House version of CFPA (with Glass Steagall re-enacted), for starters.