Chairman Johnson and Ranking Member Shelby used front page newspaper stories to make their points about the pace of the implementation of the Dodd/Frank Act. JP Morgan was in the news because it had recently reported losses of many billions of dollars in its derivative trade operations. The Banking Committee Chairman used the situation to make the point that the new law was still not fully implemented and the regulatory agencies continue to be underfunded.

Ranking Member Shelby ignored the JP Morgan matter and cited the ongoing MF Global investigation as an example as evidence the new Dodd/Frank Act was having no effect improving the regulators’ ability to protect taxpayers.

Gary Gensler, Chairman of the CFTC, and Mary Schapiro, SEC Chair, simply reported on the progress their agencies were  making to finalize the many dozens of regulations that must be in place to fully implement the new financial regulatory system.