It has been two weeks since the U.S. Senate passed its financial services regulatory reform legislation, the Restoring American Financial Stability Act of 2010 (Senate Bill). Since that time, Congress has begun preparing for the conference committee, which will be charged with reconciling the differences between the Senate Bill and the House-passed Wall Street Reform and Consumer Protection Act of 2009 (House Bill).
With the end of the Memorial Day recess, the conference committee will begin to move quickly to produce a consensus legislative proposal. Financial Services Committee Chairman Barney Frank (D-MA), who will chair the conference, has indicated his desire to complete the conference committee’s work before the Fourth of July. The White House has indicated its desire for an agreement in place before President Obama attends the Group of 20 meetings in Toronto on June 26. As we previously noted, there remain several significant differences between the Senate Bill and the House Bill which will need to be reconciled before Congress sends the legislation to the President for signature. While we believe that a concerted effort will be made to complete the conference committee by the July 4th goal, if that date slips, we do expect the final legislation to be completed no later than the congressional recess which begins the first week in August.