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Dodd Unveils Sweeping Financial Reform Bill

Senate Banking, Housing and Urban Affairs Chairman Chris Dodd (D-Conn.) unveiled a first draft of sweeping financial reform legislation on Tuesday and extended an olive branch to his Republican colleagues who have criticized components of the measure.

“That door is very much open. I’d very much like to have their input and participation,— Dodd said at a press conference.

“I hoped to be standing here today with a consensus bill, but I understand that can’t always happen,— he said, adding that negotiations will continue as he hopes to build Republican support.

Banking ranking member Richard Shelby (R-Ala.) has been highly critical of creating an autonomous consumer protection agency that is not tied to another regulatory agency, as Dodd’s outline proposes.

Dodd’s proposal would also create an independent board to identify risk in the financial system, consolidate federal banking regulation into a smaller group of agencies, and grant shareholders more influence over the companies they invest in, including decisions on executive compensation.

The Senate outline also differs from legislation being marked up by the House Financial Services Committee, led by Rep. Barney Frank (D-Mass.), but Dodd was confident Tuesday that any differences would be worked out.