* Regulators must follow Congressional intent - Stabenow
* "Devil is in the details" on new finreg reform-lawmaker
By Christopher Doering
WASHINGTON, March 29 The success of new U.S.
financial reform legislation from Congress could be judged by
the "devil in the details" yet to come from U.S. regulators
tasked with implementing the sweeping legislation, a top Senate
Democrat said on Tuesday.
The Dodd-Frank Wall Street reforms of 2010 gave regulators,
including the Commodity Futures Trading Commission and the
Securities and Exchange Commission, new found responsibility
including oversight of the roughly $600-trillion global
over-the-counter derivatives market.
"Given the strong legislative intent, the regulators still
have broad new authorities, and the devil is in the details,"
Debbie Stabenow, the new chairman of the Senate Agriculture
Committee, said at a forum on law's implementation.
"They need to know if they are writing regulations too
broadly or unintentionally pulling some market participants
into the definitions," she said.
Stabenow said market participants affected by the new law
have a responsibility to speak out about how rules will affect
"The decisions made in the coming months will shape the
derivatives regulatory landscape and global financial markets
for decades to come," she said.
U.S. businesses such as Constellation Energy Group CEG.N,
MillerCoors SAB.L(TAP.N) and Caterpillar (CAT.N) have argued
for a generous end user exemption because they use derivatives
solely to hedge risk from wild swings in prices of raw
materials or fluctuations in interest rates.
Farmers, manufacturers and other companies use derivatives
to protect their businesses insist they're not at risk of
destabilizing the financial system, and are worried they could
get caught up in requirements that derivatives users put up
money to guard against losses.
"While Congress greatly expanded the authority of the
agencies, it also came with the understanding that they must
take a thoughtful, cautious approach that reflects
Congressional intent," said Stabenow.
"This includes following Congressional intent to protect
end-users from burdensome margin requirements," she said.
Regulators at the CFTC and SEC have struggled to implement
many of the provisions of Dodd-Frank. Gary Gensler and Mary
Schapiro, the heads of the CFTC and SEC, respectively, have
said they will miss deadlines from Congress to get the new
regulations drafted and implemented.