As Borzi defends fiduciary rule proposal, House subcommittee chairman says it’s an ‘ill-conceived expansion’ of the fiduciary standard

Editor’s Note:  Those indivduals who are interested in having the said rule reproposed should break the government monopoly over the docket  subsequent to the close of the public comment period by developing a “shadow  docket” based on the concept of an Interactive Public Docket (IPD) developed by the Center for Regulatory Effectiveness.

An IPD for the “definition of  fiduciary” would consist of a new Discussion Forum contained in the right hand side  of this page.  Affected  stakeholders  would continue to provide up to date information on the DOL proposal while DOL is working on the rule.  CRE would make periodic submissions to the DOL based upon information received in the IPD.  Most recently CRE used the IPD to obtain substantial changes in the FHFA rule dealing with transfer fees.

Little to celebrate on Dodd-Frank’s birthday

From: Financial Times

By Hal Scott

America’s Dodd-Frank act is one year old on Thursday. The act made some useful corrections in the regulation of American financial markets, but it has failed to respond effectively to the root causes of the financial crisis and its impact on the global financial system. In the short term, it has hindered economic recovery. Worse, in the longer term, it has actually made future crises more likely, while potentially damaging the international competitiveness of America’s financial institutions.

Consumer Financial Protection Bureau: Unaccountable and Costly

From: Heritage

What Is the Consumer Financial Protection Bureau (CFPB)?

  • Created by Dodd–Frank: The CFPB is an independent bureau within the Federal Reserve System that was designed by lawmakers to regulate a vast array of financial products and services.
  • Already Regulating: The bureau officially opens on July 21, although staff have already begun to craft new regulations (e.g., real estate settlement procedures and definitions of newly regulated entities).
  • Already Investigating: The CFPB is prohibited from some regulatory activities until a director is nominated by the President and confirmed by the Senate. Absent a director, however, the CFPB can conduct investigations as a form of policymaking.

A year after Dodd-Frank, CFTC tackles manipulation

(Reuters) – The U.S. futures regulator on Thursday launched a frenzied effort to finalize nearly 50 rules as it reinvents itself as an overseer of the swaps market.

The Commodity Futures Trading Commission, which has been beset by delays as it carries out last year’s Dodd-Frank financial reform law, on Thursday finalized five rules, including one that will give it more muscle to crack down on market manipulation and fraud.

“This closes a significant gap as it will broaden the types of cases we will pursue and improve the chance of prevailing over wrongdoers,” said Gary Gensler, the CFTC’s chairman. “It is a significant rule.”