WASHINGTON (Reuters) - A much-anticipated package of financial regulation reforms from the Obama administration will call for creating a financial products safety commission and new rules on executive pay, hedge funds and derivatives, the chairman of the U.S. House of Representatives Financial Services Committee told Reuters on Wednesday.
It will also propose giving the federal government the power to seize and unwind troubled non-banks, said Democratic Representative Barney Frank in an interview.
Sources told Reuters the administration will release its proposal on June 17. Frank said he could not confirm that, but he said that Geithner has asked to testify before the Financial Services Committee on June 18.
Frank said a potential merger of the Securities and Exchange Commission and the Commodity Futures Trading Commission was off the table as far as he is concerned. But he said combining two bank regulators, the Office of Thrift Supervision and the Office of the Comptroller of the Currency, is “a possibility.”
He also said: “There’s a real consensus on what ought to be done in terms of a systemic risk regulator, that it does not displace the existing regulators, etc. ... But how you structure it is going to be a collective decision here in the Congress.”
He said he and House Agriculture Committee Chairman Collin Peterson, a Democrat, have been “having good conversations” on how to regulate the over-the-counter derivative markets.
“There may still be some differences. But we agree that all derivatives have to be regulated and there’s going to be some split between SEC and CFTC, and we’re working our way through that,” Frank said.
Editing by Leslie Adler