Is Financial Reform (and 404(b) Relief) Dying in the Senate?
By David Feldman at 5 February, 2010, 2:45 pm
I try not to make this a political blog and tend not to cover major legislative activities, except of course in this instance where it has a direct impact on smaller public companies. Back in December the House of Representatives approved a sweeping financial services reform bill that would add more regulatory oversight to banks and brokerage houses.
Sen. Christopher Dodd (D-CT) heads the Senate Committee trying to do the same thing. But now with the Democrats losing their filibuster-proof majority, Dodd has made clear that it is going to be more difficult to pass something now. In addition, out of the blue the Obama Administration added another demand they wanted added to the bill: a provision that would require banks not to have any proprietary trading. This would effect Goldman, Morgan Stanley and others. The other day Dodd, who is retiring in November, had unusually tough criticism for the Administration, almost begging them to back off and let him try to craft something that he thinks can get some bipartisan support.
Honestly I tend to be for as little oversight of our markets and institutions as possible, but if something is going to pass, let’s hope it includes the provision in the House bill that permanently exempts smaller public companies from auditor attestation of the adequacy of their internal financial controls under Sarbanes-Oxley Section 404(b).
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