Small Banks, States Rip Paulson Plan

(NEWSER) - The Obama administration is finalizing a legislative proposal that would strengthen the reach of financial regulatory agencies, the New York Times reports. The plan wouldn’t likely consolidate the four major bank regulators, which could meet with fierce opposition in Congress. “I don’t mind overlap as much as the idea of concentrating too much power in the hands of one agency,” said Sen. Chris Dodd. More»

Of meeting with officials, lawmaker says: 'We have never heard language like this'

(NEWSER) - Lawmakers were astounded at the possible fallout of the crisis on Wall Street outlined last night by Fed chairman Ben Bernanke and Treasury Secretary Henry Paulson, the New York Times reports. “When you listened to him describe it you gulped,” New York Sen. Charles Schumer said of the meeting between a select group of lawmakers and the two officials. More»

January markup possible as fears of a partisan battle fade

(NEWSER) - Hoping to avoid a repeat of the health care dogfight, Chris Dodd and Richard Shelby think they’ve made “meaningful progress” on a bipartisan deal on financial regulatory reform. Dodd’s initial solo draft of the bill drew Republican jeers asked top members of his Senate Banking committee to break into bipartisan pairs and work on various aspects of the bill. He’s worked with Shelby, the committee’s ranking Republican. More»

For first time in nine tries, amendment goes to House floor

(NEWSER) - For Ron Paul, it's got to be sweet. The financial regulatory reform bill that opened for debate in the House today contains Paul's amendment to subject the Fed to congressional audit—his ninth try in 11 years in office to get a Fed-curbing proposal into play. Until now, none of them has even been brought up for committee debate; this one's gone to the floor with the support of more than 300 of the lower chamber’s 435 members More»

It would create new oversight agencies

(NEWSER) - Chris Dodd introduced a sweeping financial regulation bill that creates no fewer than three new agencies to oversee the banking industry. Dodd’s bill creates an Agency for Financial Stability to identify systemic risks to the economy as a whole. It entrusts all bank supervision to the Financial Institutions Regulatory Administration, stripping the Fed of its oversight role and emergency-lending powers, which it used to save firms during the financial crisis. The Fed would instead focus entirely on monetary policy. More»