By Christopher Doering and Sarah N. Lynch
WASHINGTON (Reuters) - Securities and futures regulators will see large budget increases to help them implement sweeping new financial regulations under a bill approved by the Senate Appropriations Committee on Thursday.
The plan, which will now go to the full U.S. Senate for a vote, would give the Securities and Exchange Commission a fiscal 2012 budget of $1.407 billion, an increase of roughly 19 percent from its current fiscal 2011 budget of $1.185 billion.
The Commodity Futures Trading Commission would also see an estimated 19 percent increase in its funding, jumping from $202 million to $240 million for fiscal 2012, which starts on October 1.
"When it comes to the SEC and CFTC, they maintain the integrity of major markets in the United States and other countries," said Sen. Richard Durbin, who chairs the Senate Appropriations subcommittee that funds the two agencies.
The budget boosts would help the SEC and CFTC undertake the major new responsibilities they have inherited under the Dodd-Frank Wall Street overhaul law, which was enacted last year.
That law splits oversight of the nearly $600 trillion over-the-counter derivatives market between the two regulators, and also gives the SEC greater authority to police hedge funds, credit-rating agencies and municipal advisers.
The fate of funding for the two agencies, however, remains uncertain.
House Republicans who are worried about major Dodd-Frank provisions have generally opposed bolstering the budgets for the SEC and CFTC. Earlier this year, the House passed a bill that would cut the CFTC's budget down to $171.9 million. House appropriators also approved a measure to keep the SEC's funding flat, although it has not faced a full House vote yet.
Some lawmakers have been reluctant to support the CFTC funding boost because some feel its chairman, Gary Gensler, has been "too aggressive" in how he has gone about implementing the new derivatives rules.
"In my view the CFTC has failed to prioritize its rulemaking under Dodd-Frank, proposing unnecessary discretionary rulemaking that is not required by the act and will increase the staffing and funding demands," said Jerry Moran, the top Republican on the subcommittee that overseas the SEC and CFTC.
The argument for a boost to the SEC's budget has been somewhat easier, by contrast, in part because a provision in Dodd-Frank will require the SEC to off-set the money Congress appropriates with the fees it imposes on the firms it regulates.
Despite strong opposition from many House Republicans, one key lawmaker earlier on Thursday signaled possible support for an SEC budget boost, in a move that could help fuel future negotiations.
House Financial Services Chairman Spencer Bachus, who recently circulated a legislative proposal aimed at restructuring the SEC, acknowledged that an "increase in funding is probably necessary as part of the reform process." Still, Bachus would like to see the reforms completed before agreeing to any budget boost.
At a House Financial Services hearing on Thursday, SEC Chairman Mary Schapiro assured lawmakers the agency is already working toward improving its operations internally.
She urged the lawmakers to raise the SEC's budget, or else the agency might not be able to bring cases due to litigation costs or effectively examine clearinghouses for new derivatives regulations.
"That will result in a lack of oversight, and frankly, uncertainty for the industry," she said.
(Reporting by Sarah N. Lynch and Christopher Doering; Editing by Gary Hill, Bernard Orr)
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.