The U.S. House Financial Services Committee chairman, Rep. Barney Frank, D-Mass., told audience members at Compliance Week's annual conference this week that a final version of the financial reform bill that passed in the Senate recently is likely to be ready for the president's signature before the July 4th recess. The House version of the bill passed last December.
Frank will lead negotiations as legislators work to reach a consensus on the final bill, but he indicated the process shouldn't take long because the two versions are so similar. He said:
It's rare that two major bills come out of the House and Senate on a similar piece of legislation that are this close.
One of the changes this reform will bring, according to Frank, is a regulator to which all non-bank financial institutions must report. Compliance Week's Jaclyn Jaeger explained:
After passage of the financial reform bill, "there will be no entity in America that does not have to report financial transactions to a regulator," said Frank. That regulator will be charged with making sure the entity is always able to pay its debts and, if not, reporting that entity to the Federal Reserve.
The regulation of derivatives trading that will come of this reform is quite a shift as well, the story says. But as Vibato CEO Teresa Bockwoldt indicated last week, small businesses are waiting to see how the reform package will affect their compliance and audit obligations.