House likely to move on regulatory reform by Friday

[babylonsister]

House likely to move on regulatory reform by Friday
By Silla Brush - 12/06/09 11:06 AM ET


President Barack Obama this week will likely see Congress take a major step forward in accomplishing a sweeping financial regulatory overhaul.

The full House is expected to vote by Friday on a wide-ranging package to regulate risks across the financial system, impose new curbs on the multi-trillion dollar derivatives market and give the government tools to dissolve failing financial firms.

House Financial Services Committee Chairman Rep. Barney Frank (D-Mass.), who has spearheaded the effort, is ironing out final changes to the bill, titled the “Wall Street Reform and Consumer Protection Act of 2009.”

One of the most closely watched pieces of the measure is a new auditing requirement for the Federal Reserve pushed by Rep. Ron Paul (R-Texas.). Frank said this week not to expect changes on the floor to the audit provision.

Almost certain to be changed is an amendment that would give federal regulators power to impose a haircut on secured creditors to firms that are taken over. The amendment narrowly passed Frank’s panel and was sponsored by Reps. Brad Miller (D-N.C.) and Dennis Moore (D-Kans.).

The measure aims to give the Federal Deposit Insurance Corporation (FDIC) power to impose losses on secured creditors to help repay the government when it needs to step in to deal with a failing firm.

more...

http://thehill.com/homenews/house/70791-house-likely-to-move-on-regulatory-reform-by-friday

[Fire1]

1. Another step in the right direction. n/t