The House Financial Services Committee moved to protect its political and jurisdictional interests by conducting one its first hearings on the implementation of the derivatives section of Dodd-Frank. In his opening remarks, Congressman Scott Garrett cited a U.S. Chamber of Commerce study that concluded the implementation of derivatives section alone would cost 130,000 U.S. jobs. Congresswoman Maxine Waters, however, later read a New York Times article into the record that cited substantial flaws in the Chamber’s study. Waters and all witnesses on the first panel agreed that effective regulation would actually increase jobs.
The committee heard testimony from the first panel comprised of SEC Chair Mary Schapiro, CFTC Chair Gary Gensler and Federal Reserve Board Member Dan Tarullo. Each panelist said they were prepared to issue the necessary regulations, but the SEC and CFTC heads feared the loss of needed funds in the pending continuing resolution for funds to end the fiscal year.
A second panel representing various financial interests went on record as concerned about overreaching and burdensome Dodd/Frank regulations.
