Financial industry reform bill to be rolled out this afternoon -- what's in it
I was away for a few days last week watching my beloved West Virginia Mountaineers win the Big East tournament, but now I'm back on the economic beat.
Today's a big day for financial regulation reform. This afternoon, Sen. Chris Dodd (D-Conn.), having worked closely with Sen. Bob Corker (R-Tenn.), is expected to roll out their version of financial reform legislation.
You can read a detailed overview of what's expected by clicking here, but here are the bullet points:
To my way of thinking, the final provision is the most important, even though the consumer protection provision looks sexier because it's aimed at ordinary folks. Fed Chairman Ben Bernanke and former Treasury secretary Hank Paulson have repeatedly testified under oath that they were not able to save Lehman Brothers because they did not have the legal resolution, or wind-down, authority to do so. Lehman's failure, as you recall, really pushed the country to the edge of the precipice in fall of 2008. The government was able to negotiate a sale of Bear Stearns to sort of save that failing firm earlier in the year, but could not work a sale of Lehman. Absent that, the Fed and Treasury could not take over Lehman and wind it down -- as the FDIC does with failing banks -- so Lehman failed. (To be fair, members of Congress said after the fact that they would have given Bernanke emergency power to do the Lehman wind-down if he would have asked.)
Bernanke has repeatedly asked for his Fed to receive wind-down authority, and this bill looks to give it to him.
Follow me on Twitter at @theticker
March 15, 2010; 12:21 PM ET
Categories: Congress , Corporations , Fed Reserve , Regulation , The Ticker | Tags: Ben Bernanke, Bob Corker, Hank Paulson, chris dodd, financial regulations
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