JOHNSON STATEMENT ON DODD-FRANK IMPLEMENTATION HEARING

WASHINGTON – Today, Senate Banking Committee Chairman Tim Johnson (D-SD) held his first official hearing as chairman, and laid out his agenda for the 112th Congress.

 

At the hearing, the Committee heard from regulators including Federal Reserve Chairman Ben Bernanke about their progress in implementing the Dodd-Frank Wall Street Reform Act.

 

“There is important work ahead of us,” said Chairman Johnson.  “I am committed to an agenda that will bolster our economic recovery, make our financial regulations world class, and ensure that consumers and investors have the protections they deserve.  Two vital parts of this agenda are overseeing the implementation of the Dodd-Frank Wall Street Reform Act and beginning the process of housing finance reform. 

 

“The Committee’s oversight will seek to ensure that the letter and spirit of the new law are being implemented by the regulatory agencies, public comment on proposed rules is being appropriately solicited and considered, the new law is being enforced, legitimate concerns are recognized and addressed and that the regulators have the resources they need.”

 

 

“I’d like to call to order the first Senate Banking Committee hearing of the 112th Congress. 

 

“The last several years have been a historic time for this Committee.  I have big shoes to fill—following in the footsteps of my recent predecessors—Chairman Sarbanes, Chairman Shelby and Chairman Dodd.  I am thankful and humbled by the opportunity, and I look forward to working with all of my colleagues on the Committee to make this a productive session of Congress.  We have five new members joining our Committee, and I would like to welcome Senators Hagan, Toomey, Kirk, Moran and Wicker.  I look forward to working with all of you.

 

“There is important work ahead of us.  I am committed to an agenda that will bolster our economic recovery, make our financial regulations world class, and ensure that consumers and investors have the protections they deserve.  Two vital parts of this agenda are overseeing the implementation of the Dodd-Frank Wall Street Reform Act and beginning the process of housing finance reform.   We have compiled a further list of issues the Committee may consider, which will be posted on the Committee’s website today.

 

“This morning, we hold the first in a series of many oversight hearings on Dodd-Frank implementation.  There is certainly no shortage of topics for us to discuss with the regulators today, and in the coming weeks and months we will take a closer look at many issues important to myself and the members of this Committee.  The Committee’s oversight will seek to ensure that the letter and spirit of the new law are being implemented by the regulatory agencies, public comment on proposed rules is being appropriately solicited and considered, the new law is being enforced, legitimate concerns are recognized and addressed and that the regulators have the resources they need.  The regulators have been hard at work and I look forward to learning more about their progress implementing the Dodd-Frank Act. 

 

“I want to be clear.  The Dodd Frank Act has brought significant and much-needed reform to our financial system.  It improves consumer and investor protection, fills regulatory gaps by bringing oversight to the over-the-counter derivatives market, and helps prevent another financial crisis. The effective and timely implementation of the Dodd-Frank Act will help strengthen the economy by creating certainty for the business community, consumers and investors. In turn, that certainty will bring market participants back to the table and restore consumer and investor confidence. 

 

“A task of this complexity with such a global impact must be done with great care to avoid unintended consequences that could impair economic growth or send good paying jobs overseas.  Our oversight agenda will make sure we stay on the right track.  I commend the hard work of all of the regulators. 

 

“I look forward to working closely with all of you to be sure we get this right, and I thank you for being here today during an incredibly busy week with both the release of the budget and hearings in the House.

 

“Because of the busy schedules of our regulators, we will limit opening statements today to myself and Ranking Member Shelby, and I ask the other members of the Committee to please submit their opening statements for the record.”