Schapiro Says Budget Impasse Threatens Dodd-Frank Implementation
A congressional impasse over federal spending for the current fiscal year will hamper the Securities and Exchange Commission’s efforts to implement Dodd-Frank Act rules governing areas including hedge-fund registration and derivatives, Chairman Mary Schapiro said.
“We’re stretched incredibly thin,” Schapiro said today in remarks at the Society of American Business Editors and Writers conference in Dallas. “We can get the rules written, but what we’re not going to be able to do is operationalize them.”
Funding for the SEC and the Commodity Futures Trading Commission, which got expanded authority under the regulatory overhaul enacted last year, has been caught in a congressional battle between Republicans aiming to slash spending and Democrats looking to pay for new oversight. House Republicans are pushing to roll back federal spending to 2008 levels.
The SEC is one of the few financial regulators that would be shut down if lawmakers fail to reach agreement on a short- term spending measure by tonight. Unlike the Federal Deposit Insurance Corp. and the Federal Reserve, which are funded through industry assessments, the SEC relies on congressional appropriations for its budget.
“Tomorrow, unlike almost every other financial regulator, we may be shut down,” Schapiro said today.
To contact the reporter on this story: Phil Mattingly in Washington at pmattingly@bloomberg.net.
To contact the editor responsible for this story: Lawrence Roberts at lroberts13@bloomberg.net
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