Shelby Outlines Republican Concerns with Reform Bill

This story appeared in Bank Digest.

After defending his own record on financial services regulatory reform, Senate Banking Committee Ranking Member Richard Shelby, R-Ala., set out six specific concerns over the current proposal in the Senate. He asked how the Democrats intend to address:

1. objections to the fund to finance the resolution of failed institutions;
2. restricting payments to shareholders and creditors of failed institutions to the amount they would receive in bankruptcy;
3. preventing the Federal Deposit Insurance Corporation from guaranteeing debts of failing firms;
4. preventing the Federal Reserve Board from making loans secured by bad collateral;
5. holding the FDIC accountable for improper use of its resolution authority; and
6. preventing nonbank financial institutions from having access to discount window credit.