Dodd Vows to Push Reg Restructuring Despite Disagreement with GOP
Senate Banking Committee Chairman Christopher Dodd (D-Conn.) admitted last Friday that he and the Republicans are "at an impasse," on legislation to revamp how financial services firms are regulated, but vowed to move forward in drafting a bill.
He has asked his staff to draft a bill that the committee is likely to discuss later this month.
The largest sticking point has been the proposal to create a new Consumer Financial Protection Agency, which all the panel's Republicans, and some Democrats, have opposed.
Sen. Richard Shelby (R-Ala.), the panel's top Republican, said in a statement that he wants the same agencies that regulate financial institutions' safety and soundness to regulate consumer protection.
"I fully support enhancing both consumer protection and safety and soundness regulation. I will not support a bill that enhances one at the expense of the other, however. In order to strike the appropriate balance they must be integrated with each other, not separated from each other," he said.
The House passed a regulatory restructuring bill in December. The bill includes the creation of the CFPA but excludes most credit unions from its direct regulatory purview, though all credit unions would have to comply with its regulations. The NCUA would be empowered to enforce the CFPA's regulations.