Synopsis: On June 17, 2009, President Obama announced his Administration’s proposals for financial industry regulation reform. The President’s proposed reforms are broad in scope and target five key objectives: (i) to promote robust supervision and regulation of financial firms, (ii) to establish comprehensive supervision of financial markets, (iii) to protect consumers and investors from financial abuse, (iv) to provide the government with the tools it needs to manage financial crises, and (v) to raise international regulatory standards and improve international cooperation. The full text of the official proposal is available here. Members of the Lowenstein Sandler Investment Management Group analyze the impact of related legislative proposals in a recent article in Bloomberg Law Reports, Risk and Compliance, available here.
Status: The Obama Administration is working with Congress to promote its regulatory agenda. To date, the Administration has delivered several pieces of proposed legislation to Congress addressing certain proposed reforms (as further discussed above). In addition, Treasury Secretary Timothy Geithner has testified at several House and Senate committee hearings regarding the Administration’s reform agenda.