This week marked one year since the collapse of Lehman Brothers, a milestone that leaves many questioning if the economy is in better or worse shape as a result of the governmental actions taken over the past 12 months. Efforts to regulate the financial services industry remain in progress in the House of Representatives under the leadership of Rep. Barney Frank (D - Mass.), chairman of the House Financial Services Committee. Frank plans to release his markup agenda for the legislation later this week - that package is expected to include, among other regulatory crackdowns, a proposal for the creation of a “Consumer Financial Protection Agency.” Frank plans to pass a series of bills and send them to the Senate.
However, action in the Senate has been much slower, as Senate Banking Chairman Dodd (DConn.) has been a lead negotiator on healthcare reform. Dodd wants to have just one bill, but has said he wants it done “the right way.” With the already crowded Senate calendar this fall, which includes passage of the annual appropriations bills, Senate action on financial services reform may not begin in earnest until late this year or next year.