August 2nd, 2013
Tuesday, July 30th, SEC and CFTC officials testify on whether or not Dodd Frank Reform is moving too slowly in front of the Senate Banking, Housing and Urban Affair Committee. Opinions have been fairly split on the pace of Dodd Frank reform; certain regulators want a stricter deadline while many firms have complained that they don’t have the ability to comply with regulations in the allotted time frame.
Certain other senators, namely Massachusetts Democrat Elizabeth Warren and Arizona Republican John McCain, have been advocating for an update to the Glass-Steagall Act that would separate commercial banking from investment banking. This would further complicate the implementation of the Volker Rule under Dodd Frank. This new reform would prolong discussions and impose even harsher restrictions on firms. It’s our opinion that even with the current Dodd Frank timeline, smaller, buy-side firms are already under great pressure and will have difficulty in meeting present deadlines.
