Last month, Federal Reserve Chairman Ben Bernanke and others testified before the Senate Banking Committee regarding implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act. He noted the agency was committed to working with other financial regulators to see that the law is implemented appropriately. Of course, Republicans in the same hearing indicated their intent to delay implementation of the sweeping regulatory changes if at all possible.
This week, at least one strategy for delaying implementation came to light: Under spending cuts proposed by Republicans, the Commodities Futures Trading Commission's budget would be cut by $56.8 million and the Securities and Exchange Commission would lose $25 million over the next seven months.
Together with the Fed, the SEC and the CFTC bear the bulk of the Dodd-Frank Act implementation burden. Taking significant chunks of their funding will certainly slow the implementation process. CNNMoney.com reports:
CFTC Chairman Gary Gensler told Congress earlier this month that he would be forced to reduce his staff from 680 to below 440 if the cuts went through. ... The story is much the same at the SEC, which is attempting to ramp up its enforcement of Dodd-Frank ... [SEC Chairman Mary Schapiro] said she wasn't sure whether cuts would force staff reductions or a pullback on technology investments.
At the moment, legislators are debating a stopgap spending measure that would postpone the impending government shutdown by two weeks to give the opposing sides more time to reach a consensus on the budget