Reuters Insider - Inside the News: Republicans Explore Delaying Dodd-Frank

Hankook Shell Oil

13/06/2016 11:03

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 Source:             Thomson Reuters                                   
                                                                       
 Description:        Reuters Washington Correspondent David Clark says 
                     Republicans in the new Congress could try to slow 
                     or stall the implementation of financial reforms  
                     passed in 2010 by the outgoing Democratic House.  
 
 
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Transcript (May be auto-generated)

                 Here's what's making news at 3PM. Wall Street kicking off the New Year with a 
rally. Stocks are up more than 1% across the board, adding to last year's double
digit gains after stronger than expected manufacturing data from around the 
globe. Financial and technology shares are leading the advance. According to 
Schaeffer's Investment Research, when the S&P 500 has gained more than 1% on the
first day of trading in the New Year, the market is higher for the year and the 
average return is 19%. Oil prices started the year on a high note, rising to the
best level in 27 months and adding to last year's 15% gain. Some oil companies 
will be able to resume drilling in the Gulf of Mexico. The US Interior 
Department said it will allow 13 companies including Chevron and Shell to resume
deepwater drilling without an additional environmental review. The companies 
that were already drilling wells from the agency imposed a temporary drilling 
ban will be able to retest those halted projects if they meet certain criteria. 
Shares of Bank of America rising 6.5% on heavy volume. 

Bank of America announced it will pay $2.8 billion to Fannie Mae and Freddie Mac
to resolve issues with mortgages sold to them by Countrywide Financial before 
BofA bought that lender. Reuters Washington Correspondent Corbett Daly joins us 
now to tell us what the settlement means for GSE reform going forward. Corbett. 
Well, Rhonda, in a word, I don't think the settlement's actually gonna have much
effect on the GSE reform. This was a business decision by Bank of America, and 
Fannie Mae and Freddie Mac to put some of these losses behind them, get rid of 
the put-back issue. But as you know the Obama Administration is planning to 
unveil its proposal for Fannie Mae and Freddie Mac, and how they're going to 
reform them at the end of this month. That still gonna go on track, and the 
debate is probably gonna rage on all year. Corbett, thanks for that. Republicans
in the new Congress could put the brakes on the Dodd-Frank Financial Reform. A 
large part of that legislation passed by the Democratic House last year includes
significant boost in the budgets for regulatory agencies like the SEC. 
Republicans want to keep that funding low where Democrats in the House are 
pushing to have the budgets in particular the SEC and the CFTC to go way up. 
Republicans think they have the votes to keep those budgets down whereas the 
White House and the Senate Democrats are gonna do as much as they can to try to 
bring public pressure and all types of other pressure on Republicans to support 
big boosts for those agencies. The delay could give a reprieve to big Wall 
Street players who've been pressing regulators to slow the pace of implementing 
reforms. Coming up at 3:30, David Bailin of Citi Private Banks tells us why he 
sees investors moving into hedge funds this year. Then at 4PM, find out why 
Democrat policy guru and Treasury official Gene Sperling could get Larry 
Summers' old job as Director of the White House National Economic Council. I'm 
Rhonda Schaffler. This is Reuters Insider