House Committee Advances Bills To Alter Dodd-Frank
WASHINGTON -- The U.S. House Agriculture Committee passed six bills Wednesday that would change aspects of the derivatives section of the Dodd-Frank financial regulatory law or other laws that affect the way regulators are writing the rules.
Committee Chairman Frank Lucas (R., Okla.) said that the bills don't make " dramatic changes to Dodd-Frank."
"They are balanced proposals that ensure the legislation is implemented in the manner Congress intended," he said.
Ranking member Rep. Collin Peterson (D., Minn.) said that lawmakers should wait until regulators finish the new rules.
"I want to reiterate my view that it is premature to move on legislation until we see the final rules," Peterson said.
The Dodd-Frank law gave regulators authority to create a new oversight structure for derivatives called swaps after the sometimes-complex financial instruments were widely thought to have contributed to the 2008 financial crisis.
The Commodity Futures Trading Commission and the Securities and Exchange Commission are in the process of writing the rules that Republicans argue will disrupt the financial system.
One of the bills that was passed by the committee would create a complete exemption from parts of the new law for commercial companies that use derivatives to hedge business risk. The Dodd-Frank law included an exemption for these commercial end users from sending their derivatives trades through a clearinghouse but some regulators have proposed that they post margin on their trades under some circumstances.
Three of the bills were already passed by the House Financial Services Committee, which shares oversight of the CFTC, which has primary responsibility for writing the new derivatives rules.
Some of the bills could now be scheduled for a full House vote, but they are unlikely to be taken up by the Democratic-controlled Senate.
-By Jamila Trindle, Dow Jones Newswires; 202-862-6684; jamila.trindle@ dowjones.com
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