Democrats unveil their proposed finance regulations

Egypt News.Net
Tuesday 16th March, 2010

The US financial regulation bill has been unveiled.

The Democrat chairman of the Senate Banking Committee, Christopher Dodd, has unveiled the bill, which still does not have the support of any of the ten Republican members of the committee which has been debating it.

Christopher Dodd has struggled to get Republican backing for the proposed new laws that will give the US Federal Reserve more regulatory powers over US banks.

Banks with assets of more than $10 billion will come under the regulations, as will all mortgage-related businesses and large non-bank financial firms, such as insurers.

Portions of the bill propose the establishment of a new consumer protection agency at the Fed, with powers to regulate all lending.

It also includes the formation of a nine-member council responsible for financial stability, which will have powers to break up large companies if they are deemed to pose a threat to the stability of the financial system, as well as place financial institutions under the supervision of the Federal Reserve.

While it is not clear if the bill will gain the support of Republicans, President Barack Obama has referred to the planned laws as "a strong foundation" which will need to be strengthened.

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