Saturday, January 30, 2010

DAVOS: US Rep Frank Sees Financial Regulation Bill By Spring

By Neal Lipschutz
Dow Jones Newswires

DAVOS, Switzerland -(Dow Jones)- U.S. President Barack Obama will sign a "pretty good" financial services regulatory reform bill some time this spring, Rep. Barney Frank (D., Mass), chairman of the House Financial Services Committee, predicted Saturday.

Speaking on a panel at the annual meeting of the World Economic Forum, Frank said the end of the filibuster-proof majority Democrats enjoyed in the U.S. Senate before the surprise election of a Republican to represent Massachusetts won't affect financial-area legislation.

The Senate has traditionally operated in a negotiated way on financial issues, he said, so the drop to 59 senators from 60 in the Democratic caucus won't make a practical difference.

The House already has passed financial regulatory reform legislation. Frank said the Senate will approve a bill by March. Though it will feature some differences from the House-passed bill, Frank said compromise will be reached that will result in Obama signing a bill sometime in the spring.

Asked about meetings held here earlier Saturday between major bank executives and some legislators, central bankers and regulators from around the world, Frank said the financial industry understands some tough regulation is coming.

Regulation will be coordinated globally, though it won't be identical around the world since no global authority can impose that on sovereign nations. Still, coordinated regulation will keep financial services companies from the regulatory "arbitrage" of seeking less-regulated nations as a base.

He said he was "very encouraged" by talks here in Davos.

http://www.foxbusiness.com/story/market ... usiness%29

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