Dodd-Frank ("Dank") Part IV: Not the End!
By David Feldman at 20 July, 2010, 6:56 am
A memorandum from law firm Davis Polk & Wardwell makes it clear. The Dodd-Frank securities regulatory reform bill (I started calling it “Dank”) is just the beginning of reform. Much of the bill relates to instructing various agencies to conduct 243 rulemakings and 67 studies, according to the DPW memo. As mentioned in the prior part of this series, the SEC is given broad powers to make changes to Regulation D’s definition of accredited investor. As we will cover soon, the SEC is instructed to study whether to expand the bill’s exemption from Sarbanes-Oxley Section 404(b) to more small companies. The next several years will be quite active for various agencies, including a few new ones created by the bill.
In addition, the DPW memo indicates that there are quite a number of unclear or ambiguous parts of the bill. Apparently Barney Frank (D-MA), Chair of the House Financial Services Committee that oversaw the bill, has promised a technical amendment to the bill to clarify some things. One assumes that comes sooner rather than later because there is a real risk that most commentators have acknowledged that the Republicans take back control of the House in November, in which case Chairman Frank would hand over his gavel in January. But it appears that they are already working on Dank II!
Politico.com indicates that the President will be signing the bill tomorrow, Wednesday, July 21. Next: the big give for small business – relief from the toughest part of Sarbanes-Oxley..
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