White House Wants Faster Wall Street Reform
President Obama urged federal regulators to hasten reforms called for under the Dodd-Frank Act; currently only about 40 percent of the new rules have been implemented, Reuters reported Aug. 19.
The President told officials from the Federal Reserve, the Federal Deposit Insurance Corporation and the Consumer Financial Protection Bureau, among other agencies, that they need to do a better job coordinating reforms with one another and advised them to resist pressure from big banks to water down rules.
Among the sticking points for regulators is finalization of the Volcker rule, which would prevent banks from making risky trades with their own money. Implementation of the rule already is a year late because of the number of federal agencies involved in approval and because of intense pressure from lobbying groups working for the financial industry. They say that stiff rules could further tighten credit availability, Reuters reported.
Some Congressional Republicans also fear Dodd-Frank is too strict. In a statement issued Aug. 19, Rep. Jeb Hensarling, R-Tex., chairman of the House Financial Services Committee, said, “Dodd-Frank is an incomprehensively complex piece of legislation that is harmful to our floundering economy and in dire need of repeal,” Reuters reported.