In early May, the full Senate began considering a comprehensive banking reform package, the proposed Restoring American Financial Stability Act of 2010 (RAFSA). Most of the bill's provisions target large financial institutions, such as those involved in the current financial crisis, but smaller and mid-sized institutions are also affected. For example, the "consumer protection" portions of the bill address traditionally small lenders such as payday loan companies and other non-bank financial companies. While the proposed legislation likely will be subject to numerous amendments, the initial version of RAFSA would mandate certain changes, including possible new taxes, consumer protection, consolidated bank regulations, reducing systemic risk, new reporting requirements for hedge fuinds and investment advisors, the regulation of derivatives, and credit risk retention.
Download more information about the Restoring American Financial Stability Act (PDF:160KB).