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Frank, Senate hopeful Warren join in call for increased oversight

Elizabeth Warren

Rep. Barney Frank (D-Mass.) joined with U.S. Massachusetts Senate hopeful Elizabeth Warren on Thursday in a call for increased regulation in trading.

Both Frank and Warren pushed for greater oversight following the 2008 financial collapse and housing bubble crisis. Warren oversaw a congressional panel formed to oversee the $700 billion bailout approved by Congress and pushed for the creation of the Consumer Financial Protection Bureau, Philly.com reports.

Sen. Scott Brown (R-Mass.), who Warren is seeking to unseat, also contributed to enhanced oversight efforts. Brown broke with a majority of his party in backing the controversial reforms under the 2010 Dodd-Frank Act, though he did push sponsors to eliminate the $20 billion annual fee on banks designed to cover the costs associated with a bank breakdown.

Warren said that the need for “smart rules” was underscored by JPMorgan Chase & Co.’s recent trading bungle, resulting in potential losses of $3 billion or more. The massive losses renewed industry debate over the Volcker Rule, a provision of Dodd-Frank that some say could have prevented the losses, according to Philly.com.

Warren also pointed out efforts by the financial industry to water down regulations and enforcement.

“There needs to be an end to backdoor attempts to undermine Wall Street reform,” Warren said, Philly.com reports.

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