Senate Banking Committee Chairman Christopher Dodd (D-CT) walks away after unveiling new financial legislation, on Capitol Hill on March 15, 2010 in Washington, DC. (Mark Wilson/Getty Images)By Heather Grossmann
DNAinfo News Editor
MANHATTAN — Wall Street rallied against Sen. Christopher Dodd’s sweeping banking reform bill even as he urged the Senate on Tuesday not to adjourn for Easter recess until the bill was addressed.
Dodd’s bill would give shareholders a say in executive compensation, establish a consumer protection agency within the Federal Reserve and place limits on the “too big to fail” concept.
“We oppose this bill because it will subject traditional banks, which did not cause this crisis, to heavy new regulation,” Edward Yingling, president of the American Bankers Association, said in a statement.
“The future of traditional banks will be unnecessarily put at risk and their ability to provide the credit our economy needs will be undermined.”
ABA said that they support regulatory reform, but they do not like several elements of the particular reform proposed, including the approach to consumer protection and the weakening of federal authority in favor of state law.
The Consumer Bankers Association issued a similar warning, saying, “the bill would overturn 150 years of federal preemption that have helped create an efficient nationwide banking system.”
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