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LegislationLEGISLATION | Detail


H.R. 4173: The Wall Street Reform and Consumer Protection Act of 2009

Sponsor: Frank (D - MA)

Official Title: To provide for financial regulatory reform, to protect consumers and investors, to enhance Federal understanding of insurance issues, to regulate the over-the-counter derivatives markets, and for other purposes.

Status:
12/2/2009: Introduced
12/2/2009: Referred to House Financial Services Committee
12/2/2009: Referred to House Agriculture Committee
12/2/2009: Referred to House Energy and Commerce Committee
12/2/2009: Referred to House Judiciary Committee
12/2/2009: Referred to House Rules Committee
12/2/2009: Referred to House Budget Committee
12/2/2009: Referred to House Oversight and Government Reform Committee
12/2/2009: Referred to House Ways and Means Committee
12/11/2009: House Passage
1/20/2010: Received in Senate
1/20/2010: Referred to Senate Banking, Housing and Urban Affairs Committee
5/20/2010: Discharged Senate Banking, Housing and Urban Affairs Committee
5/24/2010: Senate Passage
6/30/2010: Conference report passed in the House
7/15/2010: Conference report passed in the Senate
7/21/2010: Signed by the President

Commentary:
This wide-ranging financial markets regulatory bill would, among many other things, establish a Financial Services Oversight Council including the heads of the Department of the Treasury, Federal Reserve Board of Governors, Comptroller of the Currency, Office of Thrift Supervision, Securities and Exchange Commission (SEC), Commodities Futures Trading Commission (CFTC), Federal Deposit Insurance Corporation, Federal Housing Finance Agency, and National Credit Union Administration Board. The stated purposes for the Council include monitoring financial markets, advising Congress of financial regulatory developments, and coordinating financial regulatory actions among member agencies. The bill provides for the establishment of a regulatory regime that will cover transactions in derivatives and give oversight responsibility to the CFTC, requiring the registration of traders and trading activities. Section 13(a)(5) of Title 7, U.S. Code, governs the trading of commodity futures and other instruments regulated by the CFTC. It provides that “[a]ny person” who “willfully” violates “any other provision of this chapter, or any rule or regulation thereunder” will be subject to imprisonment for up to 10 years, a fine of $1 million, or both, plus the costs of prosecution. Section 13(a)(5) further provides, “[N]o person shall be subject to imprisonment under this paragraph for the violation of any rule or regulation if such person proves that he had no knowledge of such rule or regulation.” Where the transaction involves securities-based derivative instruments, responsibility for regulatory oversight is vested in the SEC. Section78ff of Title 15, U.S. Code, specifies the penalties for violating the securities laws. [Editor's Note: The National Association of Criminal Defense Lawyers' far more thorough description and analysis of the many criminal provisions in this wide-ranging bill is available at http://www.nacdl.org/public.nsf/whitecollar/HR4173].

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