Business

Published — July 29, 2011 Updated — May 19, 2014 at 12:19 pm ET

Next stop for fight over Wall Street reforms: Federal court

Federal courthouse in Washington, D.C. Jasmine Norwood/ iWatch News

Your Wall Street reform reading list for today

Introduction

The battle over financial industry reforms began in Congress two years ago, then moved into regulatory agencies writing rules to carry out the Dodd-Frank law. Next stop: Federal court.

The U.S. Chamber of Commerce and the Futures Industry Associaton are among the business groups considering potential lawsuits to challenge specific Dodd-Frank regulations, the Wall Street Journal reports. Advocates of litigation also point to a major victory last week when a federal appeals court overturned a Securities and Exchange Commission rule giving shareholders more power to remove corporate directors.

“Suing a regulator is an expensive and slow process. It’s not something we do gleefully,” David Hirschmann, head of the Chamber’s Center for Capital Markets Competitiveness, told the newspaper.

What are the most likely litigation targets?

The SEC’s new program and generous bounty to encourage corporate whistleblowers to report suspected misconduct is widely opposed by business groups. Other concerns center on the set of regulations still being developed by the SEC and the Commodity Futures Trading Commission to police derivatives trading, and requirements for companies to report the pay ratio of the chief executive versus an average employee.

In general, a federal regulation cannot be challenged in a U.S. appeals court until the rule has been finalized by an agency.

Credit history & remittances – The Consumer Financial Protection Bureau is studying whether data on electronic money transfers, or remittances, can be used to help construct credit scores for people who rely on them, reports The New York Times.

Most credit histories don’t contain data on how remittances may predict a consumer’s ability to repay loans, so people who rely on these products may lack credit scores and be barred from accessing loans.

The CFPB is assembling a database of information from a large remittance provider as well as credit score information from a credit bureau. According to a preliminary report from the bureau, “A finding that consumers who send remittance transfers are more likely to repay their debts than other consumers with similar credit histories could suggest that adding remittance data to credit scores would tend to raise credit scores relating to remittance senders.”

The Daily Show – “The Daily Show with Jon Stewart” on Thursday night featured a musical performance by the Dodd-Frank law. Say what?

Correspondent John Oliver took to the stage dressed as a tattered, smudged, rolled-up paper copy of the law with tire tread marks, and declared, “Yeah, I’ve taken a few shots but I’m still standing.”

After trying to explain the year-old Dodd-Frank law in song, he abruptly halted, complaining that only 38 out of 400 mandated regulations have been completed because of lobbysts’ influence. “Here’s what’s going down: this whole financial reform thing is a sham! … I’m no law, Jon. I’m just an undefined, impotent 2,300 page piece of legislative s***!”

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sam fetters
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sam fetters

What do AT&T, Verizon and Crown Castle International Corp have in common? The largest institutional shareholders of each includes firms like: Vanguard, BlackRock, State Street (the “Big Three”), Invesco, Fidelity (FMR), JP Morgan, Wellington Management, Geode, T Rowe Price, Bank of America, and other of the largest money-management and investment firms, whom operate collaboratively (even comprising the largest shareholders of each other), forming virtual monopolies amongst the largest “competing” corporations, in most every single industry, via large share holdings. (source = http://investors.morningstar.com/ownership/shareholders-major.html?t=CCI) These are the same firms whom also largely own the third largest telecom, T-Mobile. The own the largest… Read more »

Jello Beyonce
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Jello Beyonce

I’ve a theory that the supposed “Trade Wars” and “sanctions” and political/military strife going on between the U.S., China, Russia, etc. are merely distractions, serving to divert attention away from the growing authoritarianism and Oligarchic control spreading across the globe. “Nationalism” is being used as a propagandist covert means of continued increasing Globalism. As this article states: “A Russian woman stood up to speak at one of these public meetings, and she said that when she lived in Russia, the government slam dunked her and she had no say,” King said. “Now she lives in the United States of America,… Read more »

ET69
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ET69

Marx was right about capitalism . Capital gets more and more concentrated in fewer and fewer hands. There is no way out of this greed. We need socialism!

Linda Gordon
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Linda Gordon

5g is a kill grid. The depployment of this weapon is an act of terroism genocide and ecocide. The marketers need to be jailed as terrorists.