Menendez Introduces Legislation To Strengthen Inspectors General At Financial Regulatory Agencies

Menendez Introduces Legislation To Strengthen Inspectors General At Financial Regulatory Agencies

Member of Banking Committee looks to include provisions in forthcoming regulatory reform legislation

Washington - With legislation to implement stronger financial regulations on the horizon in Congress, U.S. Senator Robert Menendez (D-NJ) has introduced a bill that would increase accountability at the financial regulatory bodies through stronger inspectors general. The Improved Financial and Commodity Markets Oversight and Accountability Act would:

•Require Presidential appointments and Senate confirmations for the Inspectors General at five key regulatory agencies: the Federal Reserve, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the National Credit Union Administration, and the Pension Benefit Guarantee Corporation

•Clarify the subpoena powers of those Inspectors General so they can properly oversee the financial regulators

•Require the financial regulators to respond to deficiencies identified by the Inspectors General by either taking corrective action or explaining to Congress why they are not taking corrective action.

"We not only need to make sure that we have stronger financial regulatory agencies to act as cops on the beat for consumers, we also have to make sure that those cops on the beat are doing their job," said Menendez. "It's clear this wasn't always the case before the financial crisis - the stories of incompetence that prevented the Securities and Exchange Commission from catching Bernie Madoff are proof. As we move forward with comprehensive regulatory reform legislation, I look forward to working with Chairman Dodd to include these provisions."

This legislation mirrors legislation passed in the House of Representatives by Rep. John Larson (D-CT), H.R. 885.
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