Senator Dodd (D-CT) has released a draft of his financial services reform bill aimed at consumer protection, enhance corporate governance and reform the way that our financial system is regulated.
Among its numerous provisions, Dodd’s bill creates an independent consumer agency within the Federal Reserve which would be led by a presidentially appointed director, confirmed by the Senate and bankrolled by the Fed. The agency would have the power to enforce consumer protection rules at banks with assets of more than $10 billion.
Dodd proposes stopping the Fed from bailing out individual companies and banks . He asked in his draft that financial firms strengthen their capital cushions and create a new process to take down giant failing companies and prevent future Wall Street bailouts.
CNNMoney: “We must plug the gaps and elliminate the inefficiences that allowed this crisis to happen in the first place,” Dodd said in a news conference.
Dodd’s bill, which creates a powerful nine-member Financial Stability Oversight Council, would also implement ‘Volcker rule’ limits on proprietary trading at banks, and bank investment in hedge funds and private equity funds.
The Senate Banking Committee chairman said he wants to push the bill through his committee next week.