The Restoring American Financial Stability Act, a bill on financial reform, is expected to go to the Senate floor for a vote in a few weeks. Introduced by Senate Banking Committee Chairman Chris Dodd, the bill cleared that panel during a party-line vote.
The bill would set up safeguards against financial system collapses, put into place an independent and new consumer financial protection unit at the Federal Reserve, and consolidate significant regulatory agencies. Certain aspects of the bill, such as funding for system-critical companies and procedures for liquidation, are still under debate.
Yesterday, Senator Dodd spoke on the US Senate Floor. He said the bill “ends bailouts.” He noted that for the first time someone would be tasked with monitoring the financial system and can warn of any risks before a meltdown results. Dodd said that Wall Street companies that create the risks will have to contend with tougher standards.
According to Shepherd Smith Edwards and Kantas founder and stockbroker fraud attorney William Shepherd, “This bill does exactly the opposite of what its critics are saying it does. This bill provides for NO taxpayer bailouts. If a financial institution is failing, no matter how large, it will be taken over by the FDIC, which is that agency’s current role. The FDIC is financed by membership dues from all FDIC insured banks, which will be increased. Similar to the manner in which smaller banks are taken over by the FDIC, almost weekly, this is the process: The mega institution fails, its executives are fired, its shareholders get nothing and its assets are sold to other financial institutions. That is no bailout!”
Related Web Resources:
Financial services regulatory reform bill heads to Senate, Business Insurance, April 14, 2010
Restoring American Financial Stability Act of 2010 (PDF)
Investment Fraud Attorney Shepherd and his law firm represent victims of securities fraud throughout the US.