Frank: Wall St. Crackdown Could Arrive Within Months

Flickr/World Economic Forum (Creative Commons)

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.


Rep. Barney Frank (D-Mass.), chair of the influential House financial services committee, says Obama’s lastest regulatory crackdown on Wall Street could make it into law in as soon as few months. Frank, who said the president’s flurry of recent financial reforms surprised him, told the Financial Times in Davos, Switzerland, that the administration’s new proposals could very well be included in an existing financial services bill already in the works within his committee. (To watch the full interview with FT‘s Gillian Tett and Frank, click here.)

More from the FT story:

This essentially gives a new systemic regulator the discretionary power to clamp down on banks’ proprietary businesses or force banks to shrink in size—if necessary. Until recently, this aspect of the bill had not garnered much attention, since there has been a wider controversy about the future identity of a systemic regulator.

However, Mr Frank argued that Volcker’s plan could be incorporated within this enhanced definition of a supervisory authority—and said he was sure that a bill would be in place well before the mid-term elections in November, if not signed off by Chris Dodd, his counterpart in the Senate, within weeks. “I think Chris will get a bill out in March.”

Overall Mr Frank said the drive to de-risk banks was to be applauded. “I wish banks had fewer ways to make money than deposits,” he said. He also expressed confidence that the US reforms could form part of a wider regulatory blueprint that would be incorporated elsewhere, including in Europe—dismissing scepticism that Mr Obama’s initiative had upset a measured, internationally co-ordinated response to the future regulation of the world’s banks.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate