Bachus demands Dodd-Frank slowdown
Monday 20 December 2010 - by Will Henley
The incoming chair of the powerful US Congressional House Financial Services Committee has written to the country's top financial lawmakers to demand a rethink of the "scope and direction" of securities rulemaking.
The chairman argues that Congress had never intended that margin requirements be applied to end-users when the Dodd-Frank Act was passed.
"To impose such requirements on companies that engage in the hedging of legitimate business risks would therefore defeat the purposes of the end-user exemption and contravene Congressional intent."
The letter is jointly signed by Frank Lucas, ranking member on the House Committee on Agriculture.
Last week, outgoing chairman Barney Frank warned that Bachus may launch an "assault" on financial regulation.
Frank said: "The assault he intends to lead against improved financial regulation is based on a seriously flawed view of the relationship that should exist between financial institutions and those who set the rules governing safety and soundness."
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