12.17.2009

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Updates

On Friday, December 11, 2009, the House passed the extensive Wall Street Reform and Consumer Protection Act.  The Wall Street Reform Act, as proposed to the floor of the House and aimed at financial regulatory reform, was discussed in our December 11, 2009 Financial Services Bulletin and can be seen here.  Some of the major amendments to the Wall Street Reform Act that were included in the final version passed by the House are summarized below.

  • An amendment proposed by Steve Cohen (D-Tenn.) and Barney Frank (D-Mass.) that eliminates language permitting the Financial Industry Regulatory Authority to regulate financial advisors associated with broker dealers.
  • An amendment proposed by Gary Peters (D-Mich.) authorizing the Federal Deposit Insurance Corporation to assess fees on financial institutions to cover shortfall on investments under the Troubled Asset Relief Program.
  • An amendment proposed by Scott Garrett (R-N.J). permitting credit rating agencies to withdraw their registration as "Nationally Recognized Statistical Rating Organizations" if certain revenue thresholds are not met.
  • An amendment proposed by Jan Schakowsky (D-Ill.) and Dina Titus (D-Nev.) granting the Consumer Financial Protection Agency the authority to regulate reverse mortgage transactions.
  • An amendment proposed by Barney Frank (D-Mass.) authorizing $4 billion in new housing relief and expanding federal preemption of state consumer law.
  • An amendment proposed by Stephen Lynch (D-Mass.) establishing rules for the governance of clearing houses and swap exchange facilities.
  • An amendment proposed by Doris Matsui (D-Cal.), Betty Sutton (D-Ohio), and Kathy Castor (D-Fla.), increasing reporting requirements to the Department of the Treasury for any mortgage servicer participating in the Making Home Affordable program.
  • An amendment proposed by Michael Burgess (R-Tex.), requiring the Federal Reserve Board to define "significantly undercapitalized" at a prudent threshold for the effective oversight of the financial system.
  • An amendment proposed by Stephanie Herseth Sandlin (D-S.D.) requiring the SEC to consider the relative risk profile of different funds when determining registration requirements.

 

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