Report: GOP Issues Alternative Reform Proposals

Posted by Orb Staff on April 28, 2010 No Comments
Categories : Residential Mortgage

As Democrats attempt for a third consecutive day to push financial reform into a full Senate debate, Republicans are reportedly circulating their own version of how to reshape the financial system.

According to Reuters, which obtained a copy of the GOP's proposals, the Republican plan includes overhauling Fannie Mae and Freddie Mac. They also are proposing a process for winding down large, troubled institutions that puts the brunt of costs on the failing companies' shareholders and creditors rather than on an industry-financed rainy-day fund.

The Republicans' version also gives national bank regulators the ability to override state regulators, tweaks the Democrats' proposed regulatory scheme governing over-the-counter derivatives and narrows the scope of a consumer-protection agency.

SOURCE: Reuters

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