Frank and Dodd release legislative proposals addressing systemic risk and modifying the regulatory framework for bank holding companies and depository institutions [1]

Copyright is retained by Clifford Chance.

Introduction

With a flurry of legislative proposals and mark-up sessions over the last few weeks, the financial services regulatory reform debate has switched into high gear. On 3 November 2009, the House Financial Services Committee commenced marking up a discussion draft of the Financial Stability Improvement Act of 2009, released by Committee chairman Barney Frank (the ‘House Bill’). The House Bill would institute (i) a framework for systemic risk regulation; (ii) certain modifications to the regulatory framework for bank holding companies (‘BHCs’) and depository institutions; (iii) a mechanism for the resolution of systemically important financial companies; (iv) certain improvements to the asset-backed securitisation process; and