Senate legislation aimed at overhauling regulation of finance would cost large banks billions of dollars, prevent them from taking certain risks and create a new regulatory infrastructure to oversee their activities.The biggest winner, in this bill, appears to be the Fed.
The draft bill introduced Monday by Senate Banking Chairman Sen. Christopher Dodd of Connecticut is tougher on financial companies than was expected just a few weeks ago.
Mr. Dodd's bill would allow the Fed to examine any bank-holding company with more than $50 billion in assets, and large financial companies that aren't banks could be lassoed into the Fed's supervisory orbit.
One of the most controversial aspects of the plan would see the creation of an entity within the Fed responsible for protecting consumers' financial interests, such as credit cards and mortgages. The unit would be independent within the central bank and would have its own budget and rule-making authority.
Monday, March 15, 2010
Dodd Unveils Finance Bill Taking Aim at Big Banks
The Wall Street Journal reports: