- The consumer financial protection agency would be part of the Federal Reserve.
- Creates a systemic risk council that would be headed by the Treasury Secretary and would include "representatives of the Fed, the new consumer agency, the F.D.I.C., the Securities and Exchange Commission, the Commodity Futures Trading Commission and the Federal Housing Finance Agency — along with an official appointed to monitor the insurance industry, which is largely regulated by the states."
- Regulate over-the-counter derivatives: "Standardized swaps and derivatives would have to be traded on exchanges or clearinghouses."
- The Federal Reserve would regulate bank holding companies with $50 billion or more in assets, and "systemically important nonbank financial institutions".
The derivative regulation is a positive step forward. I'm not sure about the systemic risk council, but this could be helpful. The consumer financial protection agency as part of the Fed is really no change.Unfortunately, the destruction done by Dodd over the past 20 years is immense already, and his last act not the least: he is going to give a lot more power to the Fed, the SEC and the Treasury, both of which have shown how incompetent they were and what consideration they had for the consumer (let's bail out the banks, but not reduce the borrowers debt) and the tax payer (let's transfer all the losses by the gamblers on Wall Street on the back of the tax payer).
What is even more unfortunate and depressing, is that knowledgeable and experienced people like CR are still unable to understand that fractional reserve banking, central banking and Keynesianism are the sources of the problems, not the solutions.