Obama Bank Plan Could Pass In Months

Jan 28 2010 | 2:44pm ET

President Barack Obama’s plan to bar banks from proprietary trading or participating in the alternative investments industry could be passed by the summer, the head of the House Financial Services Committee said.

Rep. Barney Frank (D-Mass.) told the Financial Times that he and his Senate counterpart, Sen. Christopher Dodd (D-Conn.), would have a bill ready by March, and it could be passed within six months, and definitely before November’s mid-term elections to Congress. Frank also moved to quell concern that the U.S. would be going it alone on the new regulations, a worry expressed most recently by French President Nicolas Sarkozy.

“I think we’re going to see substantial harmonization,” he told the newspaper. “We’re taking to the EU and I’m hopeful we’ll end up in the same place.” And despite the protestations of its leaders to the contrary, Frank said he believed the U.K. is “ready to come with us.”

Frank said Obama’s proposals, which would bar bank holding companies from owning, investing in or sponsoring hedge funds or private equity funds, could be added to the financial industry regulation overhaul making its way through both houses of Congress.

“We’ve been working with Paul for most of the year, so I wasn’t surprised,” Frank said of former Federal Reserve Chairman Paul Volcker, the driving force behind Obama’s planned restrictions. But he said that banks would be given “at least three years” to comply with the new regulations.

“You can’t have a fire sale,” Frank told the FT. “There would have to be a phase-in.”

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…