Dodd-Frank News Center

CFTC Commissioner Strongly Criticizes Agency Cost-Benefit Analysis

By Lene Powell, J.D., Commodity Futures Law Reporter.

In a blistering dissent, CFTC Commissioner Scott O’Malia criticized a final rule imposing certain reporting and recordkeeping requirements for swap dealers and major swap participants. In the commissioner’s view, the agency committed “regulatory malpractice” by implementing a major rule without adequate discussion of anticipated costs. 

“I have reached a tipping point and can no longer tolerate the application of such weak standards to analyzing the costs and benefits of our rulemakings,” said the commissioner in a prepared dissent. “I believe it is time for professional help.”

CFTC Publishes Proposed Rule Restricting Proprietary Trading, Seeks Comments

By Lene Powell, J.D., Commodity Futures Law Reporter. 

The Commodity Futures Trading Commission has published the text of its proposed rule imposing restrictions on proprietary trading, commonly known as the “Volcker Rule.” The Commission voted to propose the rule on January 11, 2012, in a 3-2 vote along party lines.

The publication follows the November 7, 2011 joint release by the Office of the Comptroller of Currency, Department of the Treasury, Board of Governors of the Federal Reserve (Board), Federal Deposit Insurance Corporation, and Securities and Exchange Commission.

Walsh Discusses Challenges for Community Bank Independent Directors

By Gregg D. Killoren, J.D., CCH State Banking Law Reporter, Bank Digest and Individual Retirement Plans Guide; co-author, Dodd-Frank Wall Street Reform and Consumer Protection Act—Law, Explanation and Analysis.

Acting Comptroller of the Currency John Walsh told an audience of banking professionals that the role of independent directors in community banks is essential “not just to the effective oversight of institutions of all sizes, but to the stability of our increasingly interconnected financial system as a whole.” Directors are expected “to challenge management; to understand the bank's risk appetite, internal controls, and strategy; and, more generally, to question the direction management is taking,” Walsh said. He then touted the OCC's program of workshops the agency holds specifically for bank directors.