Wall Street lobbyists are trying to reshape S. 3217 by inserting innocent-sounding amendments and special provisions, according to White House Communications Director Dan Pfeiffer.
Pfeiffer describes what he calls “most wanted lobbyist loopholes” in a White House blog entry.
One example, Pfeiffer writes, is a loophole that might keep the U.S. Treasury Department from collecting information from insurers that could help identify emerging threats to the financial system
Lobbyists also might try to take away the authority S. 3217 now would give state attorneys general to enforce financial services consumer protection rules, Pfeiffer writes.
Lobbyists are fighting for a weaker set of rules for non-banks and less supervision for non-banks, Pfeiffer adds.
“If a car dealer makes loans, or if a big department store sets up a financial services center, it’s doing what banks and credit unions do, and it should play by the same rules,” Pfeiffer writes.
The Federal Reserve Board needs the authority to supervise large non-banks, such as American International Group Inc., New York (NYSE:AIG), that appear to be big enough to pose a threat to the financial system, Pfeiffer writes.