New Congress To Focus On 4 Areas In Financial Services

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WASHINGTON – When it comes to issues related to financial services, the 112th Congress is expected to focus on, among other things, the budget and activities of the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corp.’s plans for resolving systemically important institutions, implementation of the Volcker Rule, and new derivatives regulation.

“With financial reform, with the banks that are ‘too big to fail’ … we might come back to those,” Rep. Judy Biggert, who will chair the housing and insurance subcommittee, told American Banker, an affiliate of Credit Union Journal. “The derivatives, I think, need another look. That is something that got skimmed over … things like that that went through where people didn't know the unintended consequences. We want to take a look at those things.”

Other issues likely to be on Congress’ plate:

Corrections Bill: Lawmakers may also take a stab at a “corrections” bill that attempts to recalibrate parts of Dodd-Frank. But, as with other legislation, a Democratic majority in the Senate and the threat of presidential veto may limit those plans.

Consumer Bureau: The most talked-about area for legislation to change Dodd-Frank is the consumer bureau. There is widespread speculation that Republicans will attempt to gut the agency by crippling its funding, American Banker reported.

 

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