The recently proposed financial and bank regulatory reforms by Senate Banking Committee Chairman Chris Dodd has been received with mixed reactions so far. The reforms bill aims to define new regulatory responsibilities and processes for various financial regulatory bodies including the Federal Reserve. [Read more…]
Senators Up in Arms against Yuan Manipulation by China
China’s currency policy is likely to come under fire if a bill introduced by a bipartisan group of senators in the US is accepted into the legal framework of the country. The legislation is aimed at prompting Obama’s administration to take effective and immediate action against countries like China, which have been suspected, for some years, of purposely pressuring down its currency to gain an edge in the international trade. [Read more…]
Financial Reform Could Include Legislation on Financial Planners
If a proposal from Democrat Senator Herb Kohl finds its way into the financial reform bill, and if that bill is passed, the financial planning profession could soon be regulated.
Currently there are no restrictions or laws governing people who call themselves financial planners. This is in stark contrast to other financial professions. For example, an investment adviser has to be registered with the SEC, and an insurance agent needs a license to sell insurance policies. There are many laws that govern what these professionals can and cannot do when selling their products or when providing a particular service. [Read more…]
Bill Proposed to Limit Risk Taking by Banks
In the aftermath of the financial crisis, the Obama administration has been trying to bring in measures to avoid a similar crisis in future. In another such effort, the administration has proposed a bill that would reduce risk taking by large financial companies.
The bill aims to ban financial companies from involving in risky trades for the benefit of the company itself. This kind of trading, known as proprietary trading, is done to make profits for the bank and not for its customers. The bill would also prevent banks from investing in hedge funds and private equity funds. However, all these rules would apply only on companies that use federally insured deposits. [Read more…]
