Financial regulatory reform – the future of federal preemption

Matthew S. Yoon can be contacted at 212-768-5337 (myoon@sonnenschein.com), Stephen F. Ornstein at 202-408-9122 (sornstein@sonnenschein.com), Robert C. Azarow at 202-768-5371, Matthew Dyckman at 202-408-9123 (mdyckman@sonnenschein.com).

On 15 March 2010, Senate Banking Committee chairman Christopher Dodd (D-CT) released a revised draft of financial regulatory reform legislation, the Restoring American Financial Stability Act. The Dodd bill has now been introduced as s3217 and an amended version was offered by Majority Leader Harry Reid (DNV) on behalf of Chairman Dodd and Agriculture Committee Chairman Blanche Lincoln (D-AR) when Senate debate on s3217 began on 29 April 2010 (the ‘Revised Dodd Bill’). Amendments to the Revised Dodd Bill are now being debated and, in some cases, voted on, Over 150 amendments have already been filed. The Senate’s consideration of financial regulatory reform legislation follows the passage by the House of Representatives on 11 December 2009 of its version of financial regulatory reform, H.R. 4173, the Wall Street Reform and Consumer Protection Act.