Several financial regulators will testify in front of the Senate Banking Committee on Tuesday regarding their progress in implementing rules required by the Dodd-Frank Act, including the proposal to ban firms from proprietary trading.
Banning proprietary trading falls under the controversial Volcker rule. Both Democratic and Republican lawmakers have complained that the rule's current language, which is open for public comment, is either too complex or not tough enough on Wall Street, Bloomberg.com reports.
U.S. banks and international banking trade groups recently sent a letter to regulators asking for a delay in the comment period for the rule. According to the letter, banks such as Bank of America and Citigroup are still trying to understand the rule’s language.
The four regulatory agencies responsible for implementing the Volcker rule failed to meet their Oct. 18 deadline, but it falls in the pile of several of Dodd-Frank rules that have not met their deadlines required by law, according to Bloomberg.com.
Regulators have hundreds of rules to write. Securities and Exchange Commission Chairman Mary Schapiro wrote in her prepared testimony that the commission could not do its job without a larger budget in the next fiscal year.
“If the SEC does not receive additional resources, many of the issues highlighted by the financial crisis and which the Dodd-Frank Act seeks to fix will not be adequately addressed,” Schapiro wrote in prepared testimony, Bloomberg.com reports.