The House Ag Committee held the seventh in a series of hearings Wednesday to review proposed amendments to Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. In his prepared remarks, Chairman Frank Lucas said – we’ve heard that some regulations will impose significant costs that aren’t being accounted for by the CFTC. We’ve heard that Congressional intent on many proposals may be superseded. We’ve heard confusion about the order of regulations being proposed and concern about the scope of regulatory definitions. And most importantly, we’ve heard from businesses that are concerned that some Dodd-Frank regulations will actually inhibit their ability to manage risk.
According to Lucas, – the seven legislative proposals under consideration are aimed at fixing some important areas in implementation where the regulators—the CFTC in particular—simply haven’t gotten it right. They do not undermine reform, and they are not efforts to repeal Dodd-Frank. Lucas said, – they are intended to restore the balance that I believe can exist between sound regulation and a healthy economy.
During Wednesday’s Hearing the Senate Ag Committee considered three discussion drafts. They are aimed at making sure that an overly broad swap dealer definition doesn’t encumber our energy and agriculture sectors, that our pensions and government entities do not face prohibitive burdens when accessing swaps markets, and that small financial institutions and farm credit banks can continue to pair credit with risk mitigating tools.