Rule-making begins for Dodd-Frank
House Financial Services Committee Chairman Rep Barney Frank (D-MA), left, and Senate Banking Committee Chairman Senator Chris Dodd (D-CT), right, speak to the press about financial reform from outside the West Wing of the White House.
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STEVE CHIOTAKIS: First, federal regulators all this week will be debating how to implement historic Wall Street reforms. Just yesterday, the Federal Deposit Insurance Corporation proposed some new banking rules. One of those requires banks to keep more cash on hand. Congress's financial overhaul, known as the Dodd Frank law, put federal agencies like the FDIC in charge of writing new regulations.
Marketplace's David Gura reports.
David Gura: The Dodd-Frank law was passed this summer and regulators have just a few months to shape the final rules. Rick Firestone is an attorney with McDermott Will and Emery.
Rick Firestone: The rule-making requirements that have been imposed under the Dodd-Frank Act are historical.
The Securities and Exchange Commission alone has to hammer out nearly a hundred regulations governing everything from derivatives trading to municipal bonds. Over the next few weeks, a bunch of agencies will look at debit card fees and whistleblower provisions. Firestone says corporations have been dispensing advice liberally.
Firestone: It makes for better rule making, at the end of the day, if those who are impacted by the law have expertise on the issues.
But with the GOP in charge of key House committees, regulators fear they may not get much funding. Attorney Steve Quinlivan is with the Leonard Street law firm. He says if that happens:
Steve Quinlivan: It's not going to be of much use in protecting the financial system.
In Washington, I'm David Gura for Marketplace.