Republicans Halt Financial Reform Bill—For Now

Apr 27 2010 | 2:42am ET

Senate Republicans united yesterday to delay the massive financial regulation overhaul, but debate on the bill could begin as soon as this week anyway.

Thirty-nine Republican senators joined two Democrats—including, in a procedural move, the top Democrat in the Senate, Sen. Harry Reid—to block a floor debate on the bill, which would impose tough new rules on banks, hedge funds and derivatives trading, among other items. Democrats needed 60 votes to begin the debate; two Republicans did not vote.

“We’re not going to be rushed on another massive bill,” Sen. Mitch McConnell (R-Ky.), the Senate minority leader, said.

“We are as vulnerable as we are today in the waning days of April 2010 as we were in the fall of 2008,” Sen. Christopher Dodd (D-Conn.), head of the Senate Banking Committee, shot back. “Nothing has changed, except, of course, jobs have been lost, homes have gone into foreclosure, retirement incomes have evaporated, housing values have declined.”

Despite yesterday’s procedural and rhetorical fisticuffs, both sides expressed confidence that a financial regulation overhaul will be passed, and Dodd said he continues to negotiate with Sen. Richard Shelby (R-Ala.), the Republicans’ point man on the bill.

As written, the Senate bill would require hedge funds managing $100 million or more to register with the Securities and Exchange Commission. It also includes the so-called Volcker rule, which would bar bank holding companies from owning, investing in or sponsoring hedge funds or private equity funds.

The bill would also empower regulators to unwind financial institutions that have grown “too big to fail” and create a new consumer financial products protection agency. There would also be new rules governing over-the-counter derivatives, securitization and credit rating agencies.

There are differences between the House bill, which has already passed, and the Senate proposal, which would have to be worked out if the latter is passed. The House version requires hedge funds with $150 million or more to register and does not include the Volcker rule.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.