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US bill on banking regulation to be unveiled today

Leadership

US bill on banking regulation to be unveiled today

15.03.2010
A new bill to tighten US banking regulation is set to be unveiled today.

The bill is being presented by the chairman of the Senate Banking Committee, the Democratic Senator Christopher Dodd (pictured).

However, it is unclear if the bill will gain the backing of the Senate. The Democrats need Republicans to support the bill as the party no longer has a 60-seat majority thanks to a Republican victory by Scott Brown in the Massachusetts Senate election in January.

Dodd is pushing ahead with the bill’s presentation today, despite the Republican Party withdrawing its support last week.

The precise details of the bill will not be known until it is presented. However, it is thought that contrary to an earlier bill on banking regulation presented in November 2009, it will place the US Federal Reserve at the centre of US bank regulation.

Media reports also suggest that the bill includes a measure to empower the US Government to seize a company that poses a systemic risk to the financial system, and a measure to create a US Treasury-led council to watch for such risk.

 

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