With Healthcare Now Law, Financial Reform Tops the Agenda
Commercial Observer reports: In the shadows of the divisive House debate on healthcare reform, members of the Senate have continued their work on a range of proposals addressing the need for reform in the financial system. Differences of opinion, sometimes partisan and sometimes reasoned, have precluded consensus on how best to proceed. Failing to reach a compromise proposal, the Senate Banking Committee's chairman, Chris Dodd, unveiled his own legislative proposal earlier this month.
The Senate Banking Committee took up Mr. Dodd's proposal this week. The key provisions of the bill are far-reaching in their implications. If enacted as originally conceived, the legislation will create an independent consumer protection agency within the Federal Reserve; task a new Financial Stability Oversight Council with identifying firms and financial products that might threaten stability; discourage growth in the size and scope of financial services firms so as to limit taxpayer liability; and establish a more transparent, consistent and rigorous regulatory environment.
RCA Global Chief Economist Sam Chandan explains that industry groups across the full range of financial services are taking issue with the bill's provisions. Concerning the CMBS market, the Mortgage Bankers Association has called for deliberation with respect to the proposal's risk retention provisions. Even if it survives the gauntlet of the committee process, it is unclear if Senate Democrats will be able to manage easy passage of legislation once it reaches the floor. Republicans will reportedly oppose the liquidation fund and bifurcation of regulatory authority that are the cornerstones of Mr. Dodd's proposal.
View the full article on Commercial Observer: With Healthcare Now Law, Financial Reform Tops the Agenda
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Posted by: Matthew Stone