New York (HedgeCo.Net) – The U.S. House of Representatives yesterday passed legislation that would significantly weaken elements of the Dodd-Frank Wall Street Reform and Consumer Protection Act put into place by Obama in 2010. The bill passed by a vote of 265-143.
“The purpose of this bill is to remove barriers to business growth that have been imposed by over-reaching and burdensome regulations,” NY Rep. Michael Grimm, said.
“H.R. 4413 provides some much-needed clarity to end-users, agriculture and energy producers who actually use the derivatives market to hedge against risk and did not cause the financial collapse,” House Agriculture Committee Ranking Member Collin Peterson, said, admitting that the legislation wasn’t perfect but saying “if you wait for perfection, you’ll be waiting forever and won’t be able to vote for anything.”
The Office of the President said in a statement.. “it strongly opposes the passage of H.R. 4413 because it undermines the efficient functioning of the Commodity Futures Trading Commission (CFTC) by imposing a number of organizational and procedural changes and offers no solution to address the persistent inadequacy of the agency’s funding. The enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act resulted in significant expansion of the CFTC’s responsibilities. The proposed changes would hinder the CFTC’s progress in successfully implementing these critical responsibilities and would unnecessarily disrupt the effective management and operation of the agency, without providing the more robust and reliable funding that the agency needs.”
The Dodd-Frank Act contains more than 90 provisions that require SEC rulemaking, and dozens of other provisions that give the SEC discretionary rulemaking authority. The SEC reported that 1,504 advisers to hedge funds and other private funds have registered with the agency since the Dodd-Frank Wall Street Reform and Consumer Protection Act mandated such registration.
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