The Washington Independent
The Washington Independent

House and Senate FinReg Bills: What Remains to be Resolved

Last updated: 07/31/2020 08:00 | 05/21/2010 05:41
Kenzo Norman

The House and Senate have each passed versions of financial regulatory reform, and it will be up to a conference committee comprised of members of both bodies to create a unified bill. On some fronts, the House and Senate bills aren’t far apart. On others, there’s significant daylight between them. Here is a short guide to some issues that remain to be resolved:

**Audit the Fed. **The House charges the Government Accountability Office with auditing the Fed, including its emergency lending programs, past and future. The Senate bill covers emergency lending programs only between Dec. 1, 2007, and the date the bill is signed into law.

**Derivatives. **Both the House and Senate bills require derivatives trades to go through clearinghouses. But the House bill provides for more exemptions and has bigger hypothetical loopholes, and the Senate bill requires banks to spin off and separately capitalize their swaps trading desks.

**Leverage requirements. **The Senate bill charges regulators with determining banks’ leverage requirements. The House bill has a firm 15 to 1 cap.

Proprietary trading. The House bill does not ban proprietary trading. The Senate bill charges regulators with studying proprietary trading in order to eventually restrict it by putting in place some form of the Volcker Rule.

The Consumer Financial Protection Agency. The Senate houses it in the Federal Reserve; the House version of the bill keeps it independent. Rep. Barney Frank (D-Mass.), the head of the House Financial Services Committee, has promised to fight for an independent CFPA.

Autodealers. The Senate bill allows the CFPA to regulate a broader group of lenders, including, crucially, autodealers who make car loans. The House bill has a smaller purview for the new agency.

**Resolution authority. **The House bill has an $150 billion resolution authority pool, funded by big banks. In the event that the government chose to wind down a firm, it would tap the fund to pay for relevant costs. The Senate version instructs authorities to take a loan from Treasury to pay for winding the bank down and then says the government is the first entity paid back when the bank is dissolved.

**Executive compensation. **Both the Senate and House bills require financial firms to have independent panels set executive compensation. But the Senate bill forces executives to return their bonuses if the company misstated or mislead on its financial health.

Kenzo Norman | Kenzo is a journalist-turned-marketer who is fascinated by how storytelling and targeted marketing can result in content that changes businesses. He is responsible for implementing inbound marketing strategies that help his clients raise brand awareness, generate leads, and gain new customers as an Account Executive. Jason enjoys reading on the beach, tracking down mono records, and playing guitar when he is not working.


E-Verify Mandate Begins Today

The Obama administration today begins implementation of a new mandate to require all federal contractors to check the legal status of their employees to confirm

EPA Administrator Addresses Concerns About Oil Spill Waste Management

At a hearing of the national oil spill commission today, Environmental Protection Agency Administrator Lisa Jackson addressed concerns about waste disposal from

EPA administrator defends allowing Florida to write its own water pollution rules

The EPA seal (Pic via The Environmental Protection Agency has come under fire for its decision to allow the state of Florida to write its own water pollution rules (known as “numeric nutrient criteria”). EPA Regional Administrator Gwendolyn Keyes Fleming is now firing back, writing that the Agency commends the state Department of Environmental Protection for its draft of a proposed standard. A host of environmental groups filed suit in 2008, seeking to compel the EPA to implement a strict set of water pollution standards in Florida, arguing that the state was in violation of the Clean Water Act.

EPA administrator fires back at critics in op-ed

EPA Administrator Lisa Jackson (Pic by USACEpublicaffairs, via Flickr) EPA Administrator Lisa Jackson penned a new op-ed for the Los Angeles Times , criticizing House Republicans desperately seeking to undermine the authority of the agency they have dubbed a “job killer.” Arguing that the environment affects red states and blue states alike, Jackson writes that “it is time for House Republicans to stop politicizing our air and water.” As head of the Environmental Protection Agency, Jackson has faced harsh criticism from House Republicans and GOP presidential candidates who say the agency’s regulations are an undue burden on businesses that have to cut jobs simply to comply with clean water and air rules. Presidential hopeful Michele Bachmann  has pledged to end the EPA if she takes office. “Since the beginning of this year, Republicans in the House have averaged roughly a vote every day the chamber has been in session to undermine the Environmental Protection Agency and our nation’s environmental laws,” writes Jackson.

EPA administrator says federal nutrient criteria is a ‘myth’

In testimony given late last week, EPA Administrator Lisa Jackson said that false accusations about her agency’s numeric nutrient criteria to govern Florida waterways are proving to be a detriment to their implementation. # Testifying before the House Agriculture Committee, Jackson said her agency’s work was often “mischaracterized” and addressed several myths surrounding its work

EPA Analysis Says Climate Bill’s Cost for Households Would Be ‘Modest’

All the attention on the energy front today is going to the BP spill, but the Environmental Protection Agency quietly released its long-anticipated analysis of

EPA announces hold on nutrient standards if Florida can come up with own criteria

The EPA announced today that it is now prepared to withdraw a portion of its proposed numeric nutrient criteria (a set of standards governing water pollution in inland waters) and delay the portion related to estuarine waters, to allow the state Department of Environmental Protection to develop its own criteria. # From a statement released by the EPA earlier today: # EPA recognizes that states have the primary role in establishing and implementing water quality standards for their waters. Therefore, EPA is prepared to withdraw the federal inland standards and delay the estuarine standards if FDEP adopts, and EPA approves, their own protective and scientifically sound numeric standards

EPA biologist says fracking may be partly to blame for West Virginia fish kill

New documents obtained by an environmental news service show that an EPA analyst believes that wastewater from fracking may be partly responsible for a fish kill in a West Virginia river. Scientific American reports : U.S

EPA: BP Has 24 Hours to Find a Less Toxic Chemical Dispersant

Thought the massive quantities of oil pouring into the Gulf of Mexico were the only major threat to the country’s southeast coastal waters right now? Think

EPA and California Near Deal on Fuel Efficiency Standards

Two weeks ago, the Obama administration raised fuel efficiency standards by an average of two miles per gallon -- a modest change that disappointed some

© Copyright 2021 The Washington Independent All Rights Reserved

Terms & Privacy |