Dodd, Shelby voice optimism on banking regulations

The top Senate Democrat and Republican negotiating new Wall Street regulation said Wednesday they expect to resolve their differences before the end of January, an optimistic outlook for a bill that had seemed mired in partisan conflicts.
MAR 03, 2010
The top Senate Democrat and Republican negotiating new Wall Street regulation said Wednesday they expect to resolve their differences before the end of January, an optimistic outlook for a bill that had seemed mired in partisan conflicts. Sens. Christopher Dodd, D-Conn., and Richard Shelby, R-Ala., issued a joint statement saying bipartisan negotiations have resulted in "meaningful progress." The Senate Banking Committee could consider a compromise bill as early as Jan. 26, people familiar with the discussions said. The statement's tone contrasted with Shelby's dismissive reaction when Dodd released a draft of his bill last month. At the time, Shelby said the Senate had not done enough to study the causes of last year's financial crisis to adopt regulations to address them. While both listed common goals for a regulatory overhaul, they offered no specific points of agreement. Still, if the Senate creates a bipartisan bill, it would be in sharp contrast to the House, which passed a regulatory measure with no Republican votes. "These talks have been extremely productive, with members providing great insight and demonstrating a desire to get this done and get this done right," Dodd and Shelby said. Dodd is the Banking Committee chairman and Shelby is its ranking Republican. A Dodd-Shelby compromise would differ significantly from the House version. That could require difficult negotiations to hammer out a bill that can pass both chambers. The House legislation would create a system to look out for financial sector risks that could undermine the economy. It would make it easier for the government to dismantle failing companies, and even those that are healthy but threaten the financial system. It would create a Consumer Financial Protection Agency that would regulate lending and credit cards. And it would rein in financial instruments that have long operated outside government scrutiny. Among the goals both senators said they had in common were ending a financial system where firms grow to the point they are considered too big to fail. They said they agreed to strengthen consumer protections and said the Federal Reserve should lose some of its regulatory authority and focus on monetary policy. One of the major sticking points between Dodd and Shelby is the proposed Consumer Financial Protection Agency, a central feature of President Barack Obama's regulatory plan. Dodd supports the idea and Shelby opposes it. But lobbyists, aides and senators say committee members are considering a proposal that would create an agency that writes consumer regulations but would leave enforcement to specific banking regulators. They said the proposal had yet to be embraced by Dodd and Shelby and could still be scrapped.

Latest News

Former Western Asset Management star bond manager fined $3 million
Former Western Asset Management star bond manager fined $3 million

Kenneth Leech pleaded guilty in June to one obstruction charge, and could face six to 12 months ⁠in ​prison.

Morningstar rolls out agentic AI platform built on its research
Morningstar rolls out agentic AI platform built on its research

Launch of Direct AI follows a model portfolio tie-up with Envestnet as advisors juggle AI adoption and private-market due diligence.

Advisor moves: Osaic draws Equitable advisor overseeing $245 million in assets
Advisor moves: Osaic draws Equitable advisor overseeing $245 million in assets

Meanwhile, Cetera's streak of Commonwealth recruitment continues in Washington, and an LPL advisor hops over to Raymond James in Maine.

AlphaCore adds $400M Blue Rock in Mid-Atlantic push
AlphaCore adds $400M Blue Rock in Mid-Atlantic push

The Sussex County wealth firm, built around business-owner clients, extends the California-based aggregator's footprint in the East Coast.

Bluespring Wealth builds $1B team with Family Wealth Counseling deal
Bluespring Wealth builds $1B team with Family Wealth Counseling deal

The Kestra-owned RIA acquirer merges the planning firm into KDI Wealth Management, creating a majority woman-led advisor team

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor