Rewriting the rules that govern the financial services industry has been a top agenda item for Congress and President Obama since the economy tanked and the government started bailing out the banks. Sen. Chris Dodd (D-CT), chairman of the Senate Banking Committee, secured the 60 votes he needed to start debate Wednesday on his long-awaited bill. However, this procedural motion does not mean there is an agreement between Republicans and Democrats.
Controversial issues that remain include: the creation of a Bureau of Consumer Financial Protection, regulations on the derivatives market, and a decrease in the authority of the Federal Reserve.
According to Congress Daily, "Dodd and Democratic leaders succeeded Wednesday in wearing down Republican resistance to his measure with a series of roll call votes. They were designed to tie GOP opposition to being in the best interest of Wall Street rather than the American public, using a populist tide against big banks that benefited from a government bailout to press their cause."
The resulting bill is much more liberal than Banking Committee Ranking Member Richard Shelby (R-AL) would have liked to see. Republicans will be seeking to change the bill and bring it more towards the center during the floor amendment process.
NACS Staff Contact: Lyle Beckwith
Of all things that could have stalled the climate change legislation, who would have thought a scheduling disagreement over immigration reform would be the straw that broke the camel??s back? Sen. Lindsey Graham (R-SC), one of three senators crafting the latest climate change bill, refused to move forward if Majority Leader Harry Reid (D-NV) brings up immigration reform this year.
The trio did send a description of their draft over to the Environmental Protection Agency (EPA) earlier this week for analysis. The EPA could take six to eight weeks to evaluate the potential bill, setting up a possible debate and vote for sometime in June.
For now, Reid and Graham will have to work out their differences over the hot button issue of immigration. Many interests groups are frustrated with the delay in the release of a draft bill. The American Energy Alliance filed a Freedom of Information Act request with the EPA to disclose the information they received from the senators to the public.
NACS Staff Contact: John Eichberger
NACS filed comments with the Commodities Futures Trading Commission (CFTC) regarding speculative position limits on energy contracts. In the comments NACS urges the careful consideration of competition, marketplace, and supply as related to crude oil and gasoline.
According to the memo, "Competition through transparency is clearly not in play when the markets see sudden, irrational, and inexplicable price spikes, as we have see from time to time over the last decade. NACS request that any rule ensures that the markets in crude oil and gasoline remain as transparent as possible. This transparency will allow market participants to gauge the forces driving the market while not limiting the liquidity that must exist in the markets to hedge the risk of holding, or not holding, physical inventory".
The comments also encourage the Commission to be mindful of the downstream marketplace and to do nothing that would impede the flow of actual product.
As the regulations develop NACS will continue to advocate the best possible outcome for retailers.
NACS Staff Contact: John Eichberger