See also House debate
- ---S.3217 - Restoring American Financial Stability Act of 2010 Senator Dodd's bill at Thomas.gov
- ---Senator Dodd's legislation filed with the Senate clerk on April 16
- ---Senate Banking Committee approved the Manager's amendment & Senator Dodd's March draft party line vote of 13-10 (March 22)
- ---Video of the Senate Banking Committee markup hearing C-Span.org (March 22)
- ---Summary analysis of amendments to the March draft Davis Polk (March 23)
- ---Spreadsheet of amendments to the March draft - downloadable (March 22)
- ---Summary of the March draft Senate Banking Committee (March 15)
- ---'Wall Street Transparency and Accountability Act of 2010' Senator Blanche Lincoln's derivatives legislation (April 20)
- ---One page summary The Wall Street Transparency and Accountability Act of 2010 Senate Agriculture Comm (April 21)
- ---Four page summary of the Wall Street Transparency and Accountability Act of 2010 Shearman & Sterling (April 23)
- ---S.3098 - PROP Trading Act Senator Merkley's bill standalone version of the "Volcker" rule
- ---S.3241 - SAFE Banking Act Senator Brown bill creates size and leverage limits on banks
- ---Republican Financial Regulation Counter-Proposal (April 27)
- Senate Banking Committee Chairman Christopher Dodd's November 2009 discussion draft:
- H.R. 4173, Wall Street Reform and Consumer Protection Act of 2009 (Full text) Passed December 11, 2009 by 223-202.
- House Vote 968 - H.R.4173: On Passage The Wall Street Reform and Consumer Protection Act of 2009 New York Times data.
TITLE I — Financial Stability Improvement Act, Summary
TITLE II — Corporate and Financial Institution Compensation Fairness Act, Summary
TITLE III — Over-the-Counter Derivatives Markets Act, Summary
TITLE IV — Consumer Financial Protection Agency Act, Summary
TITLE V — Capital Markets, Summary
TITLE VI — Federal Insurance Office, Summary
- Bill Summary
- Bill Highlights
- Brochure on H.R. 4173, Wall Street Reform and Consumer Protection Act.
- Wall Street Reform and Consumer Protection Act: Myths vs. Facts
- Frank Op-ED "A Comprehensive Solution to Combustible Markets"
- H.R. 1728, Mortgage Reform and Anti-Predatory Lending Act, Summary (Note: This bill will be made part of H.R. 4173 by the Committee On Rules)
- Summary of the Foreclosure Avoidance and Affordable Housing Provisions in the Manager’s Amendment to H.R. 4173
- H.R. 3269, Corporate and Financial Institution Compensation Fairness Act of 2009, Summary (Note: This bill will be made part of H.R. 4173 by the Committee On Rules)
Media coverage of House efforts
- The Cash Committee: How Wall Street Wins On The Hill Huffington Post, December 29, 2009
- Bankers Get $4 Trillion Gift From Barney Frank: David Reilly Bloomberg, December 29, 2009
- War on Wall Street as Congress Sees Returning to Glass-Steagall Bloomberg, December 28, 2009
- Not Losing Is New Winning as Bankers Dilute Overhaul Bloomberg, December 14, 2009
- Obama blasts banks for opposing financial overhaul AP, December 12, 2009
- House Passes Far-Reaching Bill Tightening Financial Rules New York Times, December 11, 2009
- House Passes Financial Regulatory Reform Bill Journal of Accountancy, Dec 11, 2009
- Bill aimed at taming Wall Street could be declawed AP, December 7, 2009
- House likely to move on regulatory reform by end of the week The Hill, December 6, 2009
- CBO: Financial overhaul would hike deficit by $4.5 billion The Hill.com, December 4, 2009
- Financial Reform Is Being Gutted ... Congress Might Not Even Realize It Washington's Blog, Dec 10, 2009
Topics covered by the House bill
The Wall Street Reform and Consumer Protection Act includes the following provisions:
- Consumer Protections: Creates the Consumer Financial Protection Agency (CFPA), a new, independent federal agency solely devoted to protecting Americans from unfair and abusive financial products and services.
- Financial Stability Council: Creates an inter-agency oversight council that will identify and regulate financial firms that are so large, interconnected, or risky that their collapse would put the entire financial system at risk. These systemically risky firms will be subject to heightened oversight, standards, and regulation.
- Dissolution Authority and Ending “Too Big to Fail”: Establishes an orderly process for dismantling large, failing financial institutions like AIG or Lehman Brothers in a way that ends bailouts, protects taxpayers, and prevents contagion to the rest of the financial system.
- Executive compensation: Gives shareholders a “say on pay” – an advisory vote on pay practices including executive compensation and golden parachutes. It also enables regulators to ban inappropriate or imprudently risky compensation practices, and it requires financial firms to disclose any compensation structures that include incentive-based elements.
- Investor protections: Strengthens the SEC’s powers so that it can better protect investors and regulate the nation’s securities markets. It responds to the failures to detect the Madoff and Stanford Financial frauds by ordering a study of the entire securities industry that will identify needed reforms and force the SEC and other entities to further improve investor protection.
- Regulation of Derivatives: Regulates, for the first time ever, the over-the-counter (OTC) derivatives marketplace. Under the bill, all standardized swap transactions between dealers and “major swap participants” would have to be cleared and traded on an exchange or electronic platform. The bill defines a major swap participant as anyone that maintains a substantial net position in swaps, exclusive of hedging for commercial risk, or whose positions create such significant exposure to others that it requires monitoring.
- Mortgage Reform and Anti-Predatory Lending: Would incorporate the tough mortgage reform and anti-predatory lending bill the House passed earlier this year. The legislation outlaws many of the egregious industry practices that marked the subprime lending boom, and it would ensure that mortgage lenders make loans that benefit the consumer. It would establish a simple standard for all home loans: institutions must ensure that borrowers can repay the loans they are sold.
- Reform of Credit rating agencies: Addresses the role that credit rating agencies played in the economic crisis, and takes strong steps to reduce conflicts of interest, reduce market reliance on credit rating agencies, and impose a liability standard on the agencies.
- Hedge fund, Private Equity and Private Pools of Capital Registration: Fills a regulatory hole that allows hedge funds and their advisors to escape any and all regulation. This bill requires almost all advisers to private pools of capital to register with the SEC, and they will be subject to systemic risk regulation by the Financial Stability regulator.
- Office of Insurance: Creates a Federal Insurance Office that will monitor all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that could contribute to a systemic crisis and undermine the entire financial system.
Draft legislation by topic
- Break up banks
- ---Senator Sanders "Too Big to Fail" draft legislation November 6, 2009
- Consumer Financial Protection Agency
- ---Summary of the bill, H.R. 3126 approved in the House Financial Services Committee, October 22, 2009 by a vote of 39-29
- Credit rating agencies
- Derivatives See especially the House work on derivatives reform.
- ---S. 272:Derivatives Trading Integrity Act of 2009 Senator Harkin
- ---Chairman Reed's proposed legislation for derivatives regulation (Senate)
- ---H.R. 3795, Over-the-Counter Derivatives Markets Act of 2009, passes 43 - 26
- ---Amendment to H.R. 3795 in the nature of a substitute, to enact the Over-the-Counter Derivatives Markets Act of 2009, House Agriculture Committee, passes October 21, 2009
- Hedge funds
- ---Private Fund Investment Advisers Registration Act (H.R. 3818) passes in Committee 67-1, October 27, 2009
- Insurance regulation
- ---October 16, 2009 Amendment in the nature of a substitute to H.R. 2609, Federal Insurance Office Act of 2009
- ---H.R. 3424, a bill that will eliminate current tax loopholes that permit foreign-controlled insurers to escape U.S. income tax on profits.
- Investor protection
- ---Investor Protection Act (H.R. 3817) passes House Financial Services Committee (41-28) November 4, 2009
- National Institute of Finance
- ---National Institute of Finance Act of 2010: S. 3005 sponsored by Senator Reed
- Reform of the Federal Reserve
- ---S. 604 - Federal Reserve Sunshine Act of 2009 (Senate)
- ---H.R. 1207 - Federal Reserve Transparency Act of 2009 (House) Paul amendment to the Watt amendment passed 43-26, November 19, 2009
- Resolution authority and the Financial Stability Improvement Act of 2009
- Retirement accounts
- ---401(k) Fair Disclosure and Pension Security Act of 2009 HR 2989, House Committee on Education and Labor
- Systemic risk fund
- Tax havens
- ---Foreign Account Tax Compliance Act of 2009 (H.R. 3933) Referred to House Ways and Means Committee, Oct 27, 2009
Legislation - - prior drafts
- Legislation related to HR 4173 Govtrak.us
- 111th Congress: H.R. 1731 Introduced
- 111th Congress: H.R. 3126 Reported by Committee
- 111th Congress: H.R. 3269 Passed House (93% of Democrats supporting, 99% of Republicans opposing.)
- 111th Congress: H.R. 3795 Reported by Committee
- 111th Congress: H.R. 3817 Reported by Committee
- 111th Congress: H.R. 3818 Reported by Committee
- 111th Congress: H.R. 3890 Reported by Committee
- 111th Congress: H.R. 3996: Resolution Authority for Large, Interconnected Financial Companies Act Reported by Committee
- 107th Congress: S. 1933 Dead
- H.R. 2609 Federal Insurance Office Act House Financial Services Committee passed December 2, 2009 unanimous voice vote.
- HR 3996 The Improving Financial Stability and Enhancing Prudential Regulation House Financial Services Committee passed December 2, 2009 at 31-27.
Other reform plans
See also Proposed plans for reform 2009