Senate Banking Chairman Christopher Dodd (D-CT) released a revised draft of his financial overhaul legislation today. Today's draft bill differs in some regards to the proposed legislative language previously released by Chairman Dodd in November 2009. Notably, the new language provides for the Federal Reserve to oversee any bank holding company with more than $50 billion in assets and would house a consumer watchdog entity, the Consumer Financial Protection Bureau, with its own budget and rule making authority within the Federal Reserve. The revised bill also now provides for large financial institutions to pay into an upfront $50 billion fund that would be used to liquidate a failing institution. Although the new legislation does not automatically implement the so-called Volcker Rule, which places certain restrictions on banks when using their own funds, it does provide for the administration of the Volcker Rule after a study by the nine member Financial Stability Oversight Council, which would be chaired by the Treasury Secretary with other members from the Federal Reserve Board, the SEC, the CFTC, OCC, FDIC, FHFA, and the new Consumer Financial Protection Bureau.

Today's released language must first pass through the Senate Banking Committee before facing any vote on the Senate floor. Chairman Dodd has expressed his hope to hold a mark up of the legislative language the week of March 22, 2010 in the Senate Banking Committee with a possible vote by March 26, 2010. In order to make such a deadline, all amendments would need to submitted to the Senate Banking Committee by Friday, March 19, 2010.

Click here for a Chairman Dodd's summary of the new draft legislation, and click here for a copy of the draft bill.