* House bill would deny SEC $222 mln funding increase
* Would make consumer agency subject to appropriations
* Part of Republican attack on Dodd-Frank
(Adds details on consumer bureau budget)
WASHINGTON, June 15 The U.S. 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 annual 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 new Consumer Financial Protection Bureau will open its
doors next month and under the Dodd-Frank law it will receive
funding directly from the Federal Reserve.
Republicans have complained this will limit the ability of
Congress to oversee the bureau.
The spending legislation released on Wednesday would limit
the amount the bureau could receive from the Fed in 2012 to
The Obama administration officials setting up the bureau
estimated in February that the new agency would need a budget
of $329 million in fiscal 2012.
The funding for the SEC would be kept steady at $1.2
billion for the fiscal year that starts Oct. 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.
The SEC and the Commodity Futures Trading Commission are
the two main financial regulators whose budget must be approved
by Congress each year.
Leaders of both agencies have said that under their current
budgets they will have trouble implementing the policy changes
called for by Dodd-Frank.
(Reporting by Andy Sullivan and Dave Clarke, writing by Karey
Wutkowski, editing by Dave Zimmerman and Matthew Lewis)