Sept. 12 -- Sen. Elizabeth Warren (D-Mass.) called for congressional action to limit systemic risks from major financial institutions, saying regulatory implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act has stalled in large part because of intense industry lobbying.
Warren, who called the 2010 legislation “the strongest in three generations,” said regulatory agencies should use the tools they have to fully implement the law.
“But if the regulators won't end too-big-to-fail, then Congress must act to protect our economy and prevent future crises,” Warren told a conference at George Washington University School of Law.
Warren's remarks could put more pressure on regulators who already face new scrutiny from the White House. In August, President Barack Obama met with top financial services regulators and called on them to finish rulemaking under Dodd-Frank (25 BBLR 1164, 8/22/13).
In July, Warren joined with Sens. John McCain (R-Ariz.), Maria Cantwell (D-Wash.), and Angus King (I-Maine) to introduce the 21st Century Glass-Steagall Act of 2013 (S. 1282)(25 BBLR 985, 7/18/13) .
The measure would give insured depository institutions a maximum of five years to end their affiliation with securities firms, insurance companies, and certain other enterprises.
Warren said her bill could take effect without the need for rulemaking.
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