WASHINGTON — Despite opposition from his counterpart in the house and from community bankers, Senate Banking Committee Chairman Chris Dodd made a concerted push during a hearing last week to create a single financial regulator. Dodd made special reference during the hearing, however, that credit unions were not to be included and that NCUA would remain an independent agency.
The Connecticut Democrat said at a hearing on the subject that he would not give in despite growing political resistance to the idea, according to American Banker, an affiliate of Credit Union Journal. "Last week I suggested further consolidation of bank regulators would make a lot of sense," he said. "Since that time, I have heard from many who have argued that I should not push for a single bank regulator. The most common argument is not that it's a bad idea — it's that consolidation is too politically difficult. That argument doesn't work for me."
American Banker reported Dodd is working on a bill that would create a single prudential regulator for all banks, stripping supervisory authority from the FDIC and Federal Reserve. The Obama administration's plan does not go as far: it would simply merge the Office of the Comptroller of the Currency and Office of Thrift Supervision into a single supervisor.
