From the February 2010 issue of Investment Advisor • Subscribe!

February 1, 2010

The Effect of Dodd's Retirement

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Opinions vary as to what Senator Christopher Dodd's retirement, announced in January, will mean for financial services and healthcare reform. Knut Rostad, chairman of The Committee for the Fiduciary Standard, says that now that Dodd will "not have to be reckoned with after the election, industry opponents of the Consumer Financial Protection Agency will push even harder to reduce its firepower, or go with the alternative and weaker option promoted by the Heritage Foundation. To balance this loss for Main Street, pushing and repackaging the fiduciary standard language to resonate with Main Street makes sense."

Others like analysts at Concept Capital, a Washington Research Group, agree that the proposed Consumer Financial Protection Agency "could not get 60 votes in the Senate." Therefore, the analysts say they expect Dodd "to weaken the agency by putting the existing banking regulators in charge of it." Dodd will also compromise to get a Senate/House financial reform bill enacted, the analysts predict, because he would "like to have his name on a signature piece of legislation" before he leaves office.

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