On financial reform laws, foreign counterparts are more talk than action
Among the 17,000-plus comments which have been submitted to the Federal Reserve concerning the Volcker rule proposal are critiques by financial instiutions in Canada, Britain, Japan, as well as by their governments. While quick to add their voices to the debate about one of the most controversial elements of the Dodd-Frank financial reform law, foreign financial regulators are falling beihnd.
“Can anybody on the panel name three countries that have passed into law, signed by their leader, Dodd-Frank-type regulations?” asked Sen. Mike Johanns, R-Neb., of regulators at a hearing of the Senate Banking Committee.
None could answer, which spoke volumes. Federal Reserve Governor Daniel Tarullo, however, did speak to similarities between Dodd-Frank and some Basel reform proposals.
He noted that Dodd-Frank provisions for resolution of failing SIFIs are fully consistent with the Basel Committee and FSB standards and stated that an international initiative roughly parralel to Dodd-Frank got under way in 2009, when G20 leaders set out commitments related to OTC reform.