Financial Regulatory Reform Takes Back Seat

As we are emerging from the financial crisis, the debate on Capitol Hill is firmly focused on health-care rather than financial regulatory reform.  It seems as though Congress can only single thread major legislation and, as a result, financial regulatory reform has taken a back seat.  However, the American Banker reported this week that the president is still intent on passing meaningful regulatory reform this year.  Here is what they had to say.

With much of the political world focused on health-care reform, the president appeared to signal that a financial services overhaul is still a priority for him. He reiterated that he hopes Congress will act this year — an increasingly unrealistic timeline by most estimates — and warned that bankers and other lenders cannot return to business as usual now that the crisis appears to be passing.

“The growing stability resulting from these interventions means we are beginning to return to normalcy,” President Obama said in a speech at Federal Hall in the heart of New York’s financial district. “But what I want to emphasize is this: Normalcy cannot lead to complacency. … We will not go back to the days of reckless behavior and unchecked excess at the heart of this crisis, where too many were motivated only by the appetite for quick kills and bloated bonuses.”

Unfortunately, a well conceived plan to reform our financial regulatory structure has not been put forth. Without a clear plan, action will come later rather than sooner. Let’s hope the bail-out band-aids hold long enough to see meaningful reform.



About Wheelhouse Advisors
Wheelhouse Advisors LLC is the publisher of The ERM Current™, an online publication and blog dedicated to providing the latest updates on current trends in Enterprise Risk Management & Control. Wheelhouse Advisors provides cost-effective Enterprise Risk Management & Control solutions to both large and mid-size corporations. To learn more about Wheelhouse Advisors, please visit our web site at

One Response to Financial Regulatory Reform Takes Back Seat

  1. The financial reform law is oriented to protecting consumers, which is good, and cleaning up future spills, which is also good, but what about the very existence of the institutions deemed too big to fail? That is, what about their market/political power? The law leaves them to widen the loopholes.


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