“The Dodd-Frank Act is a major step forward for financial regulation", Bernanke said in the text of testimony prepared for a hearing before the Senate Banking Committee. The Fed is working “to ensure that the law is implemented expeditiously and in a manner that best protects the stability of our financial system and economy.”
Bernanke’s remarks were primarily a summary of previously published actions the Fed has taken to implement provisions of the legislation, a task he said involved more than 300 central bank staff.
The law, known as the Dodd-Frank Act, creates a consumer bureau housed at the Fed, a council of regulators to monitor firms for systemic risk to the economy and a mechanism for liquidating large financial firms whose collapse could threaten economic stability.
The new Bureau of Consumer Financial Protection will take over many responsibilities which the Fed had for consumer regulation. “We have finalised funding for agreements and provided initial funding” to the new bureau, Bernanke said. “We have made substantial progress towards a framework for transferring Federal Reserve staff members.”
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