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Dodd Unveils Sweeping Financial Overhaul Bill

It would create new oversight agencies

By Nick McMaster,  Newser Staff

Posted Nov 10, 2009 2:41 PM CST

(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.

Dodd’s bill also calls for a Consumer Financial Protection Agency to oversee consumer products. A House version would give the director of the CFPA wide unilateral powers, while Dodd's envisions a five-member panel—a change applauded by the financial industry. But Dodd’s bill also gives states the power to enact tougher consumer protections than the CFPA, which banks complain will lead to an messy patchwork of regulations, the Wall Street Journal reports.

Senate Banking Committee Chairman Sen. Christopher Dodd, D-Conn., announces a financial reform package, Tuesday, Nov. 10, 2009, during a news conference on Capitol Hill in Washington.
Senate Banking Committee Chairman Sen. Christopher Dodd, D-Conn., announces a financial reform package, Tuesday, Nov. 10, 2009, during a news conference on Capitol Hill in Washington.   (AP Photo/Charles Dharapak)
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COMMENTS
Showing 3 of 31 comments
Fondue
Nov 11, 2009 12:42 PM CST
Why would they sign up for it? Why would anyone that makes that kind of money sign up for a program for the middle class and poor? I thought people like you were for freedom and choice. Now you want to force Congress to do something?
lindamae
Nov 11, 2009 5:31 AM CST
Put an addict in charge of giving out meds and expect him not to steal some for himself. That's our dear government.
lindamae
Nov 11, 2009 5:28 AM CST
Bless You Tube. There are videos of Frank, Waxman, Waters & Dodd telling McCain, Bush, Greenspan that they were crazy to worry about Fannie and Freddie. They were safe under Raines's tender care. Didn't he get $9 million? Oh, well. A drop in the bucket to these spenders. They don't have to pay.

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