BANK REGULATION: Bank oversight would be streamlined in the Obama plan with a national supervisor, merging the Comptroller of the Currency and the Office of Thrift Supervision.
The plan would eliminate the thrift charter, although Frank opposes this. Senate Banking Committee Chairman Christopher Dodd wants more radical centralization of bank oversight.
(For the administration's bill, double-click on: http://www.financialstability.gov/docs/regulatoryreform/title-III_Natl-Bank-Supervisor_072309.pdf)
(For the House bill, double-click on: http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Reform/FinancialRegulatoryReform/Titles/title-III_Natl-Bank-Supervisor_072309.pdf)
CONSUMER PROTECTION: A new Consumer Financial Protection Agency would be formed under the Obama plan to oversee mortgages, credit cards and other products and services.
The banking industry is fighting the CFPA more fiercely than any of the other Obama proposals it opposes.
Frank has a bill that pares back the CFPA's scope. His committee was expected to vote on the bill next week.
The Senate has taken no action.
(For the administration's bill, double-click on: http://www.financialstability.gov/docs/CFPA-Act.pdf)
(For the House bill, double-click on: http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Reform/FinancialRegulatoryReform/Titles/title_x_CFPA-Act.pdf)
CREDIT RATINGS AGENCIES: Reliance by regulators on credit ratings would be reduced by repealing legal rules on debt that encourage the use of ratings, under the Obama plan.
The Securities and Exchange Commission is already considering reforms for ratings agencies.
Representative Paul Kanjorski, chairman of the House capital markets subcommittee, has proposed a bill that would let the SEC dictate how agencies determine ratings.
The Senate has taken no action.
Political risk exposure: Moody's Corp, Standard & Poor's, Fitch Ratings.
(For the administration bill, double-click on: http://www.financialstability.gov/docs/regulatoryreform/titleIX_subtC.pdf)
(For the House bill, double-click on: http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Reform/FinancialRegulatoryReform/Titles/title_IX_subt_C_cred_rtg_agencis_07-20-900pm.pdf)
STUDENT LOANS: The House has approved a bill, supported by the Obama administration, to revamp the $92 billion student loan market. The Senate has not acted on the matter.
Political risk exposure: Sallie Mae (SLM Corp), Student Loan Corp, JPMorgan, Bank of America, ITT Educational Services, Corinthian Colleges.
(For the House bill, double-click on: http://edlabor.house.gov/documents/111/pdf/legislation/StudentAidandFiscalResponsibilityAct.pdf)
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The plan would eliminate the thrift charter, although Frank opposes this. Senate Banking Committee Chairman Christopher Dodd wants more radical centralization of bank oversight.
(For the administration's bill, double-click on: http://www.financialstability.gov/docs/regulatoryreform/title-III_Natl-Bank-Supervisor_072309.pdf)
(For the House bill, double-click on: http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Reform/FinancialRegulatoryReform/Titles/title-III_Natl-Bank-Supervisor_072309.pdf)
CONSUMER PROTECTION: A new Consumer Financial Protection Agency would be formed under the Obama plan to oversee mortgages, credit cards and other products and services.
The banking industry is fighting the CFPA more fiercely than any of the other Obama proposals it opposes.
Frank has a bill that pares back the CFPA's scope. His committee was expected to vote on the bill next week.
The Senate has taken no action.
(For the administration's bill, double-click on: http://www.financialstability.gov/docs/CFPA-Act.pdf)
(For the House bill, double-click on: http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Reform/FinancialRegulatoryReform/Titles/title_x_CFPA-Act.pdf)
CREDIT RATINGS AGENCIES: Reliance by regulators on credit ratings would be reduced by repealing legal rules on debt that encourage the use of ratings, under the Obama plan.
The Securities and Exchange Commission is already considering reforms for ratings agencies.
Representative Paul Kanjorski, chairman of the House capital markets subcommittee, has proposed a bill that would let the SEC dictate how agencies determine ratings.
The Senate has taken no action.
Political risk exposure: Moody's Corp, Standard & Poor's, Fitch Ratings.
(For the administration bill, double-click on: http://www.financialstability.gov/docs/regulatoryreform/titleIX_subtC.pdf)
(For the House bill, double-click on: http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Reform/FinancialRegulatoryReform/Titles/title_IX_subt_C_cred_rtg_agencis_07-20-900pm.pdf)
STUDENT LOANS: The House has approved a bill, supported by the Obama administration, to revamp the $92 billion student loan market. The Senate has not acted on the matter.
Political risk exposure: Sallie Mae (SLM Corp), Student Loan Corp, JPMorgan, Bank of America, ITT Educational Services, Corinthian Colleges.
(For the House bill, double-click on: http://edlabor.house.gov/documents/111/pdf/legislation/StudentAidandFiscalResponsibilityAct.pdf)
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
