Washington, DC – U.S. Senator Tim Johnson (D-SD), a member of the Senate Banking Committee, today released the following statement as the committee holds its first hearing on implementation of the Dodd-Frank Wall Street Reform Bill.
First, I want to thank Chairman Dodd for his leadership. Without his hard work, we would not have passed the historic Dodd-Frank legislation. Second, given the extensive scope of the Dodd-Frank legislation and the fact that much of it is subject to regulatory interpretation and rulemaking, our work is certainly not finished.
There is obviously a lot of ground to cover with our witnesses today, but I think it is important to begin these conversations, and today’s hearing certainly provides us with an opportunity to identify important issues that will need more attention. I suspect as we further identify these areas, there will be many more oversight hearings in the future.
As both the regulators and industry proceed with the initial stages of Dodd-Frank implementation it is important for us to hear from the regulators on the priorities they are making, and the potential challenges they are facing. I know I am hearing from constituents in my state who are concerned about this stage of implementation, and I thank the witnesses for being here today to talk about these concerns.
I believe there are some issues, including derivatives, the “Volcker Rule”, market making, insurance and capital standards, to name a few, where it is going to be vitally important that we get the rules right, ensure that we harmonize these rules internationally, and guarantee that our nation’s consumers and investors continue to be protected.
Additionally, as we create the new agencies and entities mandated by Dodd Frank, we must do it thoughtfully and carefully. Strong systemic risk regulation, common sense consumer and investor protection, certainty and having federal and international expertise on insurance are all key to a stable economy and a strong financial services sector. We need to put the right people and resources in place to ensure that these agencies and council succeed.