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SEC, Fed not creating new investment bank rules: Cox

WASHINGTON (Reuters) - A planned pact between the Federal Reserve and the Securities and Exchange Commission will not create new regulations and oversight for U.S. investment banks, the chairman of the SEC said on Friday.

The purpose of the agreement is to “facilitate the execution of each agency’s respective statutory responsibilities,” Christopher Cox said in a letter to top lawmakers on the Senate Banking Committee.

The Fed and the SEC have been developing a formal agreement to share information about investment banks. But the chairman of the Senate Banking Committee, Christopher Dodd, and the top Republican on the panel, Richard Shelby, warned regulators not to get ahead of Congress with any reforms.

Cox said the SEC and Fed agreement would not in any way “create new legal authorities or responsibilities.”

Reporting by Rachelle Younglai; Editing by Andre Grenon

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