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Senate Banking Panel Passes Sweeping Finance Reforms

They weren’t kidding when they said this evening’s markup of finance reform legislation would be a speedy affair. The Banking Committee took less than an

Jul 31, 2020110.9K Shares2M Views
They weren’t kidding when they said this evening’s markup of finance reform legislation would be a speedy affair.
The Banking Committee took less than an hour to pass the bill — along a party-line vote of 13 to 10 — and send it to the chamber floor. The quick process is an indication that Republicans, who’ve introduced hundreds of amendments designed to dilute the reforms, plan to stage their fight on the Senate floor, where they’ll likely have more cover from conservative-leaning Democrats who’ve historically protected the banking industry.
A Banking Committee summary of the legislation follows the jump.
Consumer Protections with Authority and Independence: Creates a new independent watchdog, housed at the Federal Reserve, with the authority to ensure American consumers get the clear, accurate information they need to shop for mortgages, credit cards, and other financial products, and protect them from hidden fees, abusive terms, and deceptive practices.
Ends Too Big to Fail Bailouts: Ends the possibility that taxpayers will be asked to write a check to bail out financial firms that threaten the economy by: creating a safe way to liquidate failed financial firms; imposing tough new capital and leverage requirements that make it undesirable to get too big; updating the Fed’s authority to allow system-wide support but no longer prop up individual firms; and establishing rigorous standards and supervision to protect the economy and American consumers, investors and businesses.
Advanced Warning System: Creates a council to identify and address systemic risks posed by large, complex companies, products, and activities before they threaten the stability of the economy.
Transparency & Accountability for Exotic Instruments: Eliminates loopholes that allow risky and abusive practices to go on unnoticed and unregulated – including loopholes for over-the-counter derivatives, asset- backed securities, hedge funds, mortgage brokers and payday lenders.
Federal Bank Supervision: Streamlines bank supervision to create clarity and accountability. Protects the dual banking system that supports community banks.
Executive Compensation and Corporate Governance: Provides shareholders with a say on pay and corporate affairs with a non-binding vote on executive compensation.
Protects Investors: Provides tough new rules for transparency and accountability for credit rating agencies to protect investors and businesses.
Enforces Regulations on the Books: Strengthens oversight and empowers regulators to aggressively pursue financial fraud, conflicts of interest and manipulation of the system that benefit special interests at the expense of American families and businesses.
Rhyley Carney

Rhyley Carney

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