Dodd’s Financial Rules Bill Dilutes Obama Plan to Seek Support

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Dodd’s Financial Rules Bill Dilutes Obama Plan to Seek SupportDodd’s Financial Rules Bill Dilutes Obama Plan to Seek SupportMarch 16 (Bloomberg) -- Senate Banking Committee Chairman Christopher Dodd’s planATM Partsfor the biggest Wall Street#x regulatory overhaul since the 1930s drops provisions he sought in November and dilutes others as he seeks bipartisan support.

The measure shelves a single regulator that would have stripped the Federal Reserve and Federal Deposit Insurance Corp. of bank-supervision roles,katana, and a plan to hold brokersATM Partsto the same fiduciary standard as investment advisers. Dodd’s plan for an independent consumer protection agency becomes a unit within the Fed and the so-called Volcker Rule to limit risky trading by banks would be introduced only after a period of study.

The Connecticut Democrat’s bill, based on a proposal by President Barack Obama last June, lets regulators oversee over- the-counter derivatives, forces hedge funds bigger than $100 million to register with the Securities and Exchange Commission and empowers the Fed to force large firms to break up if they pose a “grave threat” to the economy. Some critics said it didn’t go far enough.

“I don’t see this legislation as so momentous that it’s going to halt the financial services industry in its tracks,” said Gilbert Schwartz, a former Federal Reserve attorney and a partner at law firm Schwartz & Ballen LLP in Washington. “It hasATM Partsa lot of the same provisions#x that we’ve already seen. It’s more of a ho-hum proposal.”
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