Podcast Center
Video Center
Webcasts
Resource Center
Events
September 30, 2009 at 08:00 PM
Washington was abuzz with Congressional and SEC hearings September 30 as the House Financial Services Committee and its Capital Markets Subcommittee met to discuss a draft of legislation put forth by Barney Frank (D-Massachusetts) to create the Consumer Financial Protection Agency (CFPA), as well as a discussion draft of legislation put forth by Rep. Paul Kanjorski (D-Pennsylvania) to create the Enhanced Accountability and Transparency in Credit Rating Agencies Act.
Frank, chairman of the House Financial Services Committee, said during his opening statement that he plans to have legislation creating a CFPA come to a vote by his committee during the week of October 12, and to also have legislation to expand government oversight of derivatives later in October. Frank also said he anticipates completing votes on financial regulatory reform by late October or early November.
Meanwhile, at the SEC
SEC Chairman Mary Schapiro also held a two-day hearing September 29-30 to discuss potential curbs on securities lending and naked short selling. During the first day of hearings focusing on securities lending, Schapiro said that “For a long time, securities lending was regarded and described as a relatively low risk venture, but the recent credit crisis revealed that it can be anything but low risk.” This was particularly the case, she said, “with cash collateral reinvestment programs which experienced unanticipated illiquidity and losses. Some institutions that lent their securities, and the beneficiaries relying on those institutions, were significantly harmed.” Many questions have arisen, she continued, “with respect to the securities lending market and whether it may be improved for the benefit of market participants and investors.”
