"Looming Budget Cuts Are Bad News For Wall Street Reform"
Congressional Republicans have taken every opportunity to gum up the implementation of the Dodd-Frank financial reform law. They have denied regulators the funds needed to finalize the law’s rules, leading to huge delays.
And the GOP is about to receive a hand from the so-called “sequester,” budge cuts scheduled to take effect at the end of the week. As The Hill reported, both the Securities and Exchange Commission and the Commodity Futures Trading Commission, regulators charged with large responsibilities under the law, will see hefty reductions in funding:
The Securities and Exchange Commission’s (SEC) $1.3 billion budget would fall by $108 million, while the CFTC would take a $17 million haircut to its $205 million budget.
The OMB’s report also states that the new Consumer Financial Protection Bureau (CFPB) — despite not having its budget set by Congress like the SEC and CFTC — would also face cuts totaling $34 million from its $448 million budget.
During a House Financial Services Committee hearing today, both ranking member Rep. Maxine Waters (D-CA) and Rep. Keith Ellison (D-MN) raised concerns about the ability of those agencies to do their jobs should the sequester go into effect. Watch it:
Allowing the sequester to go ahead would have a huge impact on many important programs. Meanwhile, Wall Street will continue to avoid the scrutiny it deserves.