Washington, D.C. – Congress is set to vote on legislation that enacts key recommendations from the Bipartisan Policy Center’s (BPC) Financial Regulatory Reform Initiative (FRRI) on how to improve financial regulation and oversight. The initiative convened a series of task forces that released five white papers analyzing what is and what is not working with the Dodd-Frank Act. These papers highlight concerns with the implementation of the swaps push-out rule, also known as the Lincoln amendment, as well as problems regarding the lack of funding at the Securities and Exchange Commission (SEC) and Commodities Future Trading Commission (CFTC).
The Consolidated and Further Continuing Appropriations Act is consistent with BPC’s recommendations to repeal the Lincoln Amendment and to substantially increase funding for the SEC and CFTC. This bipartisan, congressional action will give these agencies the resources necessary to implement Dodd-Frank regulations and to effectively supervise the parts of the financial industry under their respective jurisdictions. Among other tasks, the additional funds will allow the SEC and CFTC to address compliance issues with the Volcker Rule. Furthermore, the BPC initiative found that a well-structured and monitored Volcker Rule will accomplish the same policy objectives as the Lincoln amendment, making the swaps push out both costly and unnecessary.
“Together, the provisions of the legislation will improve and strengthen financial regulation,” said Martin Neil Baily, a co-chair of FRRI. “The passage of this legislation will improve financial regulation by providing additional resources to regulators in order to fulfill Dodd-Frank’s objectives, while eliminating a duplicative regulatory structure that has proven far more difficult to implement than originally anticipated. These legislative measures will enhance economic growth while strengthening oversight of the financial system.”