Financial Regulatory Forum

Financial regulation reform is now law: what’s next?

Can the financial regulation law signed today prevent another crisis? Garett Jones, an assistant professor of economics at George Mason University, led a debate today at the Mercatus Center in Washington D.C. on the path financial reform will take now that it’s the law of the land. Watch the debate below.

FACTBOX-Major U.S. financial regulation reform proposals

June 9 (Reuters) – Negotiators for the U.S. Senate and House of Representatives will begin on Thursday to hammer out a compromise between two competing bills representing the biggest overhaul of financial regulation since the 1930s.

A House-Senate conference committee must find a middle ground between bills passed by the two chambers. The committee’s final report could differ from earlier versions.

Once approved by both chambers, the compromise legislation will go to President Barack Obama to sign it into law. That could happen by July 4, analysts say.

SNAP ANALYSIS – Goldman charges give lift to Lincoln US swaps bill

By Roberta Rampton

WASHINGTON, April 16 (Reuters) – Bombshell fraud charges against Goldman Sachs, one of the largest swaps dealers on Wall Street, give new impetus to a tough derivatives reform bill proposed by Senate Agriculture Chairman Blanche Lincoln on Friday.

The bill must be meshed with other proposals that are part of Congressional efforts to reform the financial regulatory system. But Lincoln is now placed to play a leading role in the debate on how the final package will impact on the $450 trillion over-the-counter swaps market.

With one eye to the November mid-term elections, the bill could find support from lawmakers keen to take a stand against excess on Wall Street. But it is unclear whether the White House would support going this far.

SCENARIOS-Three routes to swaps reform in U.S. Congress

WASHINGTON, March 16 (Reuters) – The path to government regulation of the $450 trillion market in over-the-counter derivatives must wind through the U.S. Senate Agriculture Committee, which oversees futures markets.

The journey began in the House of Representatives in December with the passage of a bill that would bring OTC derivatives under government regulation for the first time.

The Senate Banking Committee is also involved. A bill unveiled on Monday by its chairman calls for new rules for the market, which is dominated by a handful of Wall Street firms, including Goldman Sachs and JPMorgan Chase.

ANALYSIS – Democrats bet politics favor US financial reforms

By Kevin Drawbaugh

WASHINGTON, Feb 18 (Reuters) – The next round of betting is near in a high-stakes game to tighten U.S. financial regulation and Democrats are wagering heavily on a hunch — that some Republicans cannot afford politically to block reform.

The view is strongly held at the White House, where officials remain confident, despite setbacks, that reforms will be approved by Congress this year, said congressional aides.

President Barack Obama and the Democrats need a boost as they head into November’s midterm congressional elections after disappointing outcomes on healthcare and climate change,

BREAKINGVIEWS-Volcker Rule looks more like hype than future law

"Just a photo op"?

"Just a photo op"?

 – The author is a Reuters Breakingviews columnist. The opinions expressed are his own – 

By James Pethokoukis

WASHINGTON, Feb 15 (Reuters Breakingviews) – The much-hyped Volcker Rule proposal is failing fast in the U.S. Congress. Paul Volcker probably isn’t that surprised. The former Federal Reserve chairman joked he was “just a photo op”, even after President Barack Obama’s public embrace of his proposal to limit bank proprietary trading. The problem is that legislators are no longer interested in sweeping reform.

Any reform plan has to get through the U.S. Senate Banking Committee. Now that the mood of crisis has passed, Wall Street campaign contributions and Republican intransigence are paramount there. That means the new negotiating tag-team — Democrat Chris Dodd, the chairman, and Republican freshman Bob Corker — is not going to agree on anything radical. Corker says the Volcker Rule will not be a “major topic” for discussion, and that is probably OK with much of the committee.

ANALYSIS – Change in Senate sharpens U.S. regulatory reform fight

By Kevin Drawbaugh

WASHINGTON, Jan 20 (Reuters) – The financial regulation debate is set to get more divisive after Massachusetts voters elected a Republican senator, with Democrats and Republicans both trying to tap Americans’ deep anger over the economy.

Ahead of November’s congressional elections, look for Democrats to double-down on their attacks against banks and Wall Street bonuses, with Republicans standing firm on a strategy of opposition and delay, supported by banks.

In the long run, the arithmetic of the Senate will push the Democrats toward compromise, while voter resentment over the power and privilege of Wall Street will force Republicans and business interests to yield to reforms, some significant.

ANALYSIS-Financial reform push shaken as Obama, Dodd confer

Obama and Dodd to confer    By Kevin Drawbaugh
   WASHINGTON, Jan 20 (Reuters) – As Massachusetts voters handed Democrats a stunning setback, President Barack Obama and U.S. Senate Banking Committee Chairman Christopher Dodd met on Tuesday to discuss the future of financial regulation reform. (more…)

Global financial regulation overhaul seen in 2010

By Kevin Drawbaugh and Huw Jones

WASHINGTON/LONDON, Jan 6 (Reuters) – Global financial regulation has changed little since the 2008 banking crisis, but that won’t be the case much longer.

U.S. and EU authorities are expected to hammer out the definite shape of a new regulatory order in 2010 that will fundamentally change how world banks and markets operate.

Stricter limits on leverage and capital will emerge, leading eventually to slimmer profits for banks, policy analysts said. Formerly unregulated off-exchange derivatives markets will have to conform to new procedures.

U.S. industry sharpens attack on financial reforms

By Karey Wutkowski and Kevin Drawbaugh

WASHINGTON, Dec 8 (Reuters) – U.S. industry is freshening its attack on financial reform, pledging more cash to defeat a new consumer agency and raising concerns over a provision that could force secured creditors to shoulder losses.

The U.S. Chamber of Commerce on Tuesday unveiled a new radio and television advertising campaign that portrays the proposed Consumer Financial Protection Agency as a threat to small business and economic growth.

The push comes just one day before the full U.S. House of Representatives is scheduled to start debating a massive legislative package that would overhaul financial regulation.

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