Financial regulators face budget limits in House

Reuters News
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Posted: Jun 15, 2011 10:08 AM
Financial regulators face budget limits in House

WASHINGTON (Reuters) - The Securities and Exchange Commission would be denied a dramatic funding increase for the 2012 fiscal year under a bill released on Wednesday by the House Appropriations Committee.

The Republican-led committee's bill would also strip the newly created consumer financial watchdog of its independent funding, subjecting it to the politically charged budget process starting in 2013.

"This new agency created by the Dodd-Frank legislation has not yet been fully constituted and many questions remain as to its authority and mission," the committee said in a statement.

The funding for the SEC would be kept steady at $1.2 billion for the fiscal year that starts October 1, according to the bill. The Obama administration had asked for a $222 million bump in funding for the agency that was given more responsibility to police markets in last year's Dodd-Frank financial reform law.

Republicans are trying to attack the overhaul of financial regulations by denying funding to agencies responsible for overseeing the reforms.

(Reporting by Andy Sullivan, writing by Karey Wutkowski, editing by Dave Zimmerman)