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Dodd-Frank creates tension within the financial industry

While many financial industry lobbyists share contempt for the Dodd-Frank Act, they are often at odds with each other as they continue to fight with their Wall Street competitors over the outcome of regulations.

The Chamber of Commerce and the American Bankers Association have different desired outcomes for rules such as restrictions on lending and the $600 trillion derivatives market, according to NYTimes.com.

The larger U.S. banks are arguing with the smaller banks and are encouraging the Commodity Futures Trading Commission to relax proposed rules that would create broader competition in the derivatives industry, NYTimes.com reports.

The banks are concerned that smaller institutions may not have the financial strength to take on potential risks.

Another internal battle looming in the financial industry is between the CME Group and the Intercontinental Exchange. Both companies offer clearinghouses and trading platforms and have been pitted against each other in Dodd-Frank rulemaking on the so-called position limits plan, according to NYTimes.com.

The rule places hard caps on speculative trading in commodities like oil, wheat and gold.

Regulators blame the hostile industry debates for their delay in finalizing new rules.

“Our charge as regulators is to ensure market integrity and an open and competitive marketplace for all market participants,” Gary Gensler, the chairman of the CFTC, said, according to the NYTimes.com.

Scott Talbott, a lobbyist for the Financial Services Roundtable, said these types of differences are common.

“The financial services industry is broad and diverse and segments are often in competition with each other,” Talbott said, NYTimes.com reports.

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