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Dodd-Frank's Rubber Meets the D.C. Road: Advisor Briefing for the Week of September 27, 2010

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Last week’s major market-moving news came from the Fed Open Market Committee and several measures of housing’s health. This week, we begin to see how the Dodd-Frank financial services reform bill will play out inside the Beltway, including the premiere of the Financial Stability Oversight Council at the business week’s end, and high-profile appearances before a Senate panel on Thursday by Ben Bernanke and Mary Schapiro. Here are the scheduled developments for this last week of September that will likely move the markets and cast light on the state of the economy.

The week begins slowly, though the Wall Street Journal reports that one of the largest emerging-markets asset managers, South Korea-based Mirae Asset Global Investments, will launch six new EM mutual funds in the U.S. on Monday, Sept. 27.

The first major economic news arrives Tuesday, Sept. 28, with the release of the S&P Case/Shiller home price index for July, along with the Conference Board’s Consumer confidence sounding for September. The Senate Judiciary Committee is slated to hold a hearing exploring ways of combating corporate fraud and corruption.

On Thursday, September 30, the likely big market mover will be hearings conducted by the Senate Banking Committee to discuss implementation of the Dodd-Frank Act, featuring testimony by Fed Chairman Ben Bernanke, SEC Chairman Mary Schapiro and Treasury Dept. Deputy Secretary Neal Wolin. Also on Thursday comes the weekly jobless claims report by the Department of Labor, along with the release of final numbers for second-quarter GDP. The Commodities Futures Trading Commission is scheduled to vote on proposals to enact the OTC derivatives provisions embedded in, that’s right, Dodd-Frank.

While Friday, Oct.1, marks the beginning of the fourth quarter, and brings reports on personal income and spending for August, the Thomson Reuters/University of Michigan consumer confidence index for September, construction spending for August, auto sales for September, and the ISM manufacturing index for September, the biggest news of the day is likely to be the first meeting of the Financial Stability Oversight Council, the systemic risk regulatory overseer that was a central tenet of Dodd-Frank.


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