The Senate Banking Committee convened a hearing today with representatives from Treasury, the OCC, FRB, FDIC, SEC and CFTC to examine international coordination of financial reform. The hearing covered a wide range of issues, including OTC derivatives, extraterritoriality, and orderly liquidation. The Volcker Rule (see FSM Report PROPTRADE10) was a hot topic, with FRB Governor Tarullo pushing back against new legislation from Sen. Crapo (R-ID) to extend the statutory effective date until a final rule is promulgated. Chairman Johnson (D-SD) reiterated his openness to a technical corrections bill to fix any unintended consequences of the Dodd-Frank Act, although he did not discuss whether the Crapo legislation might be an idea to which he is open. Separately, the Volcker Rule was targeted by Rep. Frank (D-MA), who issued a statement calling on regulators to issue guidance clarifying compliance obligations under the law given that the implementing regulations surely will not be complete by the statutory deadline.

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