Thursday, November 10, 2011

Administration Statement of Policy Supports Senate Bill Funding of SEC and CFTC

The Obama Administration has issued a Statement of Policy strongly supporting the funding for the SEC and CFTC in the Senate version of the Energy and Water Development and Related Agencies Appropriations Act, HR 2354. The Senate bill would fund the SEC at a level of $1.4 billion, which will enable the SEC to carry out without delay its increased responsibilities for registration, oversight, and enforcement within the securities marketplace. The Administration strongly supports the Senate level of $240 million for the CFTC since this funding level will better enable the CFTC to provide the necessary oversight of the futures and swaps marketplace in a timely and effective manner. Moreover, the Administration strongly supports the Senate bill's provision of $66 million for major IT system investments, which are essential to the CFTC's oversight and clearing responsibilities as mandated by the Dodd-Frank Act.

More broadly, the Statement of Policy notes that the Dodd-Frank Act contains essential measures to crack down on abuses in the mortgage industry, make financial contracts simpler, end hidden fees, and provide clear and concise information to borrowers about the obligations they are undertaking.