Sen. Toomey Issues Statement On House Committee Passage Of Swaps Push Out Bill
WASHINGTON, D.C. -- Today, the House Financial Services Committee voted to approve legislation identical to a Senate bill introduced by Sens. Pat Toomey and Kay Hagan.
The "Swaps Regulatory Improvement Act" amends Section 716 of the Dodd-Frank Act which forces banks to execute swaps in an affiliate outside of the bank.
Said Sen. Toomey: "Section 716 of Dodd-Frank is costly and unnecessary and could, in fact, contribute to systemic risk. Chairman Bernanke has said that Section 716 ‘would make the U.S. financial system less resilient and more susceptible to systemic risk.'
"Banks use derivatives to help mitigate the risk of their normal banking activities. Fixing this ill-conceived language is good for the economy and the soundness of our financial services system.
"I urge the full House to consider this measure."