Frank says cutting funds to regulators is 'worst of all worlds'

Frank says cutting funds to regulators is 'worst of all worlds'
Barney Frank says Republican "nickel and diming" of SEC, CFTC "does grave harm."
NOV 28, 2011
U.S. Representative Barney Frank said Republican efforts to cut funding to agencies implementing new Wall Street rules under the Dodd-Frank Act are creating the “worst of all worlds” for regulators. “This nickel and diming the Securities and Exchange Commission and Commodity Futures Trading Commission does grave harm,” said Frank, co-sponsor of the financial-regulation law that bears his name, during testimony at a Senate Banking Committee hearing in Washington today. Frank of Massachusetts, the senior Democrat on the House Financial Services Committee, was the first witness at a hearing marking the one-year anniversary of the law signed by President Barack Obama. Regulators including Federal Reserve Chairman Ben S. Bernanke, SEC Chairman Mary Schapiro and CFTC Chairman Gary Gensler are also testifying at the hearing conducted by Senate Banking Committee Chairman Tim Johnson. House Republicans, who took majority control of the chamber after Dodd-Frank was passed, have pushed to cut the funding of the SEC and CFTC, which are required to write hundreds of rules to implement the law. While Republicans may support less regulation, it is “the worst of all worlds” to have underfunded regulators try to write the rules required by the law, Frank said. Johnson, a South Dakota Democrat, said his panel will continue “rigorous oversight” as regulators draft and implement rules. “Unfortunately, these reforms have been under attack since this bill was signed into law,” Johnson said in his opening statement. Senator Richard Shelby of Alabama, the Banking Committee's senior Republican, said there were “numerous areas where Republicans and Democrats could have easily reached agreement” during negotiations before Dodd-Frank was enacted. “Unfortunately, however, the administration decided early there would be no real compromise,” Shelby said. The law was passed over nearly unanimous Republican opposition in the House and Senate. --Bloomberg News--

Latest News

Private credit becoming 'big piece' of annuities, T. Rowe exec says
Private credit becoming 'big piece' of annuities, T. Rowe exec says

Goldman Sachs retirement survey finds 83% want guaranteed income, while the annuities providing that income increasingly hold private credit.

Zocks debuts Claude plugin with seven skills for financial advisors
Zocks debuts Claude plugin with seven skills for financial advisors

The AI meeting assistant's Advisor Intelligence plugin turns client conversation data into annual reviews, tax scans and attrition alerts.

Stifel settles massive $30 million complaint involving star broker’s sale of structured products
Stifel settles massive $30 million complaint involving star broker’s sale of structured products

Chuck Roberts and Stifel have been facing scrutiny due to sales of structured products and structured notes.

SEC floats CFP route to accredited investor status, fund rules refresh amid private market push
SEC floats CFP route to accredited investor status, fund rules refresh amid private market push

Among other updates, the proposals would let advisors to regulated funds earn performance fees and allow interval funds to offer monthly repurchases.

The Year Is 2046 and I’m a Financial Advisor 
The Year Is 2046 and I’m a Financial Advisor 

What will financial advice look like 20 years from now? Evan Vladem explores how AI may transform wealth management while reinforcing the enduring value of human guidance, trust, and empathy. 

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

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains