Christopher Dodd

The Committee on Banking, Housing and Urban Affairs…raised serious concerns about certain actions you have taken.  Specifically, it was noted that Congress has neither granted the Federal Reserve the authority to permanently open the discount window to investment banks with primary dealer status, nor authorized the SEC’s Consolidated Supervised Entities (“CSE”) program through which it regulates investment bank holding companies that own depository institutions.

 
Given the limited authority of the Fed and the SEC to regulate investment banks with primary dealer status, and Congress’s ultimate responsibility for formulating financial regulatory policy, we ask that no action regarding implementation of the MOU be taken before we can determine that it is in the best interests of our nation’s economy and the well being of its citizens.  While we recognize that oversight of investment banks with primary dealer status is temporarily necessary for the proper implementation of the PDCF, it is Congress’s role to determine if and how any alterations to our financial regulatory system should be undertaken.

(Co-signed by Sen. Shelby)