CNBC is reporting that Senator Chris Dodd, Chairman of the Senate Banking Committee, is unlikely to unveil financial reform legislation this week, so that he can negotiate with Republican Sen. Bob Corker, (Rep-Tenn), who is a member of the Senate banking committee has been asked to hammer out a bipartisan deal.Dodd may wait until next week to give him time to negotiate with Republicans. The key sticking points in the Senate bill are the consumer protection piece to the legislation, according to CNCC.
But reporter John Harwood points out that Corker was involved in negotiating the auto bailout in 2009, and ultimately didn't support the deal. So although he stepped forward, his action didn't bear fruit "We'll see if Bob Corker is willing at the end of the day and defy republican leaders and cut a deal with Chris Dodd.
But Corker could be key to negotiating a bipartisan agreement with Republicans over the Consumer Financial Protection Agency. The key sticking points are where the agency will sit- whether it will be an independent, standalone agency or whether it will be housed within Treasury or the Federal Reserve. Republicans have criticized the need for a new layer of bureaucracy. The second sticking point is will it have strong rule-making authority or will their regulations conflict with the federal regulator.
The consumer protection piece is one component of the broad package of financial reform legislation, which contains new rules for tightening oversight of OTC derivatives, systemic risk regulation, hedge funds, brokers vs. advisers, etc.
According to CNBC's Harwood, there's going to be financial regulation one-way or the other from the Administration and Democratic leadership's point of view. "The question is whether it will have a significant Republican component or do they move forward from a bipartisan basis, by picking up a few moderate Republicans," said the CNBC reporter.
CNBC is reporting that Senator Chris Dodd is unlikely to unveil financial reform legislation this week, to negotiate with Republican Sen. Bob Corker over the consumer protection piece. Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio