Senate Banking Chairman Tim Johnson (D-S.D.) expressed disappointment that regulators had not yet defined systemically important financial institutions during a hearing on Dodd-Frank Act oversight.
During his opening statement on Tuesday, Johnson acknowledged that Dodd-Frank Act rules that have already been implemented may have reduced risk within institutions but have stopped short of decreasing the overall number of the “too-big-too-fail” institutions, according to ABA.com.
Johnson also expressed his discontent at the missing MF Global funds to the financial regulators on the panel of witnesses.
Johnson said that he has received letters from his constituents about reports from MF Global bankruptcy trustees that more than $1 billion in customer funds are missing, according to AdvisorOne.com. He grilled both Gary Gensler, chairman of the Commodity Futures Trading Commission and Securities, and Exchange Commission Chairman Mary Schapiro for answers on how the missing funds are being tracked down.
During his opening statement, Johnson inquired about many of the more complex rules of the Dodd-Frank Act still under consideration, such as the Volcker Rule, the Qualified Residential Mortgage determination and enhanced supervision of non-bank financial companies, according to ABA.com.
The financial regulators on the panel said they were tied down with hundreds of rules to write with insufficient funding.
“Without sufficient funding for the commission, the nation cannot be assured that this agency can oversee the swaps market and enforce rules that promote transparency, lower risk and protect against another crisis,” Gensler said.