It looks like reform of our financial regulatory scheme will have to wait until next year.
The Obama administration has proposed one set of reforms that greatly increases the scope of the Federal Reserve’s supervisory authority. The House of Representatives has several bills in the works, reflecting discontent among Democrats about aspects of the adminstration’s plan. And the Senate has its own bill in the works that rejects the Super Fed idea in favour of a new council of regulators akin to the one favoured by FDIC chair Sheila Bair.
Meanwhile, Republicans are complaining that the timetable for the bills is too short, reducing the chance for a bipartisan deal on reform. Dodd’s proposals to freeze credit card rates and extend the home buyer tax credit are also complicating things. The ill will generated from the health care reform debate isn’t helping.
And the Thanksgiving recess looms.
So what does all this mean?
“People on both sides of the committee, chaired by Chris Dodd, the Democratic senator, say the chances of the law being passed by the year-end, as planned by the administration, are slight,” the Financial Times reports.
Now people on Capitol Hill are saying that something might get done during the first quarter of 2010.