Key provisions of Wall Street regulation bill

AP News
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Posted: Dec 11, 2009 6:29 PM

Key provisions of financial regulation legislation passed by the House:

_Financial Services Oversight Council made up of treasury secretary, Federal Reserve chairman and heads of regulatory agencies to monitor the financial markets to watch for potential threats to financial system.

_Consumer Financial Protection Agency to police lending, taking powers now exercised by various bank regulators.

_Federal Reserve loses consumer protection regulation authority and ability to unilaterally inject money into financial institutions.

_Government Accountability Office, Congress' investigative arm, given power to audit the Fed.

_Regulates derivatives, the complicated financial instruments blamed for accelerating the Wall Street crisis. Contains exceptions for corporations that use derivatives as a hedge against price fluctuations, not as a speculative investment.

_Requires large, interconnected companies to put more money in their reserves.

_Gives shareholders the right to cast nonbinding votes on executive pay packages. Regulators have a say on compensation practices, not on pay itself.

_Ratings agencies, blamed for giving too high ratings to bad mortgage-related securities, would have to register with the Securities and Exchange Commission and would face increased liability standards.

_Adds $3 billion to help unemployed homeowners avoid foreclosure and $1 billion in neighborhood assistance funds. Money requested by Congressional Black Caucus.