Dodd's Proposed Wall Street Rules Would Toughen Scrutiny of Banks

Wall Street Journal
March 15, 2010
Paletta, Damian
P. A2

Senate Banking Committee Chairman Christopher Dodd (D-Conn.) plans to introduce legislation on March 15 that would overhaul the financial system and hopes to hold a vote on the bill in his committee next week. Key proposals include the creation of an independent consumer financial protection agency (CFPA) within the Federal Reserve. While Dodd appeared to back-pedal on the CFPA issue in recent weeks in order to gain GOP support, the powerful lawmaker now has tightened the screws in his proposal to give the government more room to rein in risky practices or certain kinds of lending. The new watchdog would have authority to write new rules for any financial company -- from small payday lenders to mammoth banking conglomerates -- and sanction those with $10 billion or more in assets for violating those rules. Under pressure from the Treasury, Dodd also granted the CFPA authority over certain nonbank lenders.
Web Link - May Require Paid Subscription