Debate Ends on Reg Reform Bill
John Kelly 270004J7VQ firstname.lastname@example.org | | 0 Comments | 147 Visits
The Senate today voted 60-38 to end debate of the Financial Regulation Reform Bill and move to final passage later today before heading to President Obama’s desk. In addition to increased power to monitor systemic risk in banks, the Bill gives regulators the ability to step in and breakup or seize the assets of financial institutions deemed to be at risk of failing and posing a threat to the financial system. It also promises to create a new federal agency called the Consumer Financial Protection Bureau (CFPB) which will police loans and financial services products that banks and others sell to consumers. This morning’s vote was primarily democratic (all but one democrat supported the bill), and Republicans for the most part are claiming that it overextends the power of the government which, they argue in the long run will cost banks a significant amount of money in meeting the new regulations and reporting requirements.
The Huffington Post is reporting that, “a team of Goldman Sachs analysts predicted in a Tuesday research note that the legislation will annually cost Bank of America about $4.4 billion, Citi about $3.7 billion, JPMorgan about $5.3 billion, Morgan Stanley about $900 million, and Wells Fargo about $2.2 billion.”
The bill seems certain to pass the final Senate vote later today and Obama is ready to sign it. The ultimate impact on the risk and compliance management market is yet to be determined, but one thing is for certain, the era of deregulation is officially over.