U.S. Senators Olympia J. Snowe and Susan Collins today announced that the U.S. Department of Agriculture (USDA) Rural Development Community Facilities program will award more than $3 million in funding for rural community facilities projects in Maine.
The funding is being distributed to Maine through the American Recovery and Reinvestment Act of 2009. Senators Snowe and Collins worked with a bipartisan group of senators to craft the legislation that became law in February.
“USDA Rural Development grants provide opportunities for rural communities across Maine to improve their communities and boost economic growth,” Senators Snowe and Collins said in a joint statement.
The following will receive funding:
• Maine Rural Water Association - $500,000
• Community Concepts, Inc. - $2,655,000
• Friends of Marsh River Theater - $21,000
Through its Community Facilities program, USDA ensures that such facilities are available to all rural residents. These funds are available to public bodies, non-profit organizations, and recognized Indian tribes.
Tuesday, May 19, 2009
Senator Collins questions top census appointee
from Nextgov.com:
Read more >>
Sen. Susan Collins, R-Maine, criticized the bureau's program to develop handheld computers that it planned to give to census workers to take door to door to count households that had not returned paper forms. Census announced in April 2008 that it will not use the handhelds after their development fell behind schedule, ran over budget and did not perform as planned.
"It's really been appalling, after spending literally billions of dollars and much time, the Census Bureau scrapped its plans to use handheld technology for nonresponse follow-up due to significant performance problems and a loss of confidence in its contractors," Collins said.
She asked Groves how he would correct problems associated with the handhelds. He said the IT issues stemmed partly from management issues and partly from an absence of research and development. Groves said he would ask the bureau's top leaders to become involved in all future IT projects.
Read more >>
Monday, May 18, 2009
Senator Collins' Blog: US-Canadian legislators' conference in Quebec
This weekend, along with nine other members of Congress, I was a delegate to a US-Canadian legislators' conference. We met in Charlevoix, Quebec, a beautiful area of bays, mountains, and charming villages along the St. Lawrence Seaway.
The area was created by a huge meteorite striking the earth 350 million years ago, or so we are told. When Samuel de Champlain discovered the area, he called the bay "Malbei," meaning "bad bay," because his ship ran aground!
We stayed at the Manoir Richelieu, a hotel that overlooks the St. Lawrence Seaway, a mighty salt water river.
The only disadvantage of the hotel was its very long distance from the Quebec City airport - some two-and-a half hours by bus.
We met with our Canadian counterparts to discuss energy, environmental, economic, border, and national and homeland security issues. I was able to get a resolution passed that is important to Washington County proposals to develop an LNG terminal, which Canada has been blocking by refusing to cooperate in any of the regulatory reviews. The resolution calls on both countries to participate in good faith and expeditiously in regulatory reviews of proposed facilities in their ports. I faced strong opposition at first from some of the Canadians, but revised the language and prevailed after a lot of work.
It was fun figuring out how to put together a coalition of Canadians representing four political parties and ranging from the far left New Democrat Party to the Conservative Party. And I swear it was my ability to speak a bit of French that helped me to win the support of three Canadian legislators who represent the separatist party Quebecois! I had my American colleagues lined up, but since the group will only approve consensus resolutions, I had to get the Canadians too.
On homeland security issues, the Canadians, regardless of party, were upset about some comments made by Secretary Napolitano about the northern border. I will try to straighten this out upon by my return to Washington and prior to the Secretary's upcoming trip to Ottawa.
Another concern of the Western Members of Parliament was our "Country of Origin Labeling" law - known as COOL. This issue turns out to be far more complicated than I had realized for the livestook producers. Apparently, pigs are often born in Canada, then shipped to the U.S. for fattening and eventual "finishing," as the Canadians delicately put it. So the issue arises, are the eventual pork products to be labled "American" or "Canadian?". Are they prohibited when "Buy American" provisions are applied?
By the way, while the lower House in Canada is elected, the Senate is appointed. When a vacancy occurs, the Prime Minister makes the appointment, and Senators may serve until age 75.
We had non-stop meetings on Saturday and finished with a two-hour plenary session on Sunday. Sunday morning, there was an "interfaith" service at the hotel conducted by a nun from Quebec City who drove all the way out to the hotel to conduct the service.
Then after our final plenary session adopting the resolutions, we drove to Baie-Saint Paul, an artist colony about a half hour away from the hotel. Baie Saint Paul is also the birthplace of Circe du Soleil, and prior to dinner, we were entertained by three performers, including a young woman who did an extraordinary gymnastics performance. I think she must have been a contortionist. Her legs twisted into impossible positions, and her feet were as expressive as her hands.
Dinner was at a local bistro with excellent food and a trio of musicians (two fiddlers and one guitarist) who played every possible style of American and Canadian music, often with all of us singing along.
This weekend was a great opportunity to strengthen relationships with our Canadian neighbors and to work together on common issues with our closest ally and biggest trade partner.
The area was created by a huge meteorite striking the earth 350 million years ago, or so we are told. When Samuel de Champlain discovered the area, he called the bay "Malbei," meaning "bad bay," because his ship ran aground!
We stayed at the Manoir Richelieu, a hotel that overlooks the St. Lawrence Seaway, a mighty salt water river.
The only disadvantage of the hotel was its very long distance from the Quebec City airport - some two-and-a half hours by bus.
We met with our Canadian counterparts to discuss energy, environmental, economic, border, and national and homeland security issues. I was able to get a resolution passed that is important to Washington County proposals to develop an LNG terminal, which Canada has been blocking by refusing to cooperate in any of the regulatory reviews. The resolution calls on both countries to participate in good faith and expeditiously in regulatory reviews of proposed facilities in their ports. I faced strong opposition at first from some of the Canadians, but revised the language and prevailed after a lot of work.
It was fun figuring out how to put together a coalition of Canadians representing four political parties and ranging from the far left New Democrat Party to the Conservative Party. And I swear it was my ability to speak a bit of French that helped me to win the support of three Canadian legislators who represent the separatist party Quebecois! I had my American colleagues lined up, but since the group will only approve consensus resolutions, I had to get the Canadians too.
On homeland security issues, the Canadians, regardless of party, were upset about some comments made by Secretary Napolitano about the northern border. I will try to straighten this out upon by my return to Washington and prior to the Secretary's upcoming trip to Ottawa.
Another concern of the Western Members of Parliament was our "Country of Origin Labeling" law - known as COOL. This issue turns out to be far more complicated than I had realized for the livestook producers. Apparently, pigs are often born in Canada, then shipped to the U.S. for fattening and eventual "finishing," as the Canadians delicately put it. So the issue arises, are the eventual pork products to be labled "American" or "Canadian?". Are they prohibited when "Buy American" provisions are applied?
By the way, while the lower House in Canada is elected, the Senate is appointed. When a vacancy occurs, the Prime Minister makes the appointment, and Senators may serve until age 75.
We had non-stop meetings on Saturday and finished with a two-hour plenary session on Sunday. Sunday morning, there was an "interfaith" service at the hotel conducted by a nun from Quebec City who drove all the way out to the hotel to conduct the service.
Then after our final plenary session adopting the resolutions, we drove to Baie-Saint Paul, an artist colony about a half hour away from the hotel. Baie Saint Paul is also the birthplace of Circe du Soleil, and prior to dinner, we were entertained by three performers, including a young woman who did an extraordinary gymnastics performance. I think she must have been a contortionist. Her legs twisted into impossible positions, and her feet were as expressive as her hands.
Dinner was at a local bistro with excellent food and a trio of musicians (two fiddlers and one guitarist) who played every possible style of American and Canadian music, often with all of us singing along.
This weekend was a great opportunity to strengthen relationships with our Canadian neighbors and to work together on common issues with our closest ally and biggest trade partner.
Wednesday, May 13, 2009
Collins and Carper introduce Volunteer Firefighter and EMS Personnel Job Protection Act
CONGRESSIONAL FIRE CAUCUS CO-CHAIRS INTRODUCE BIPARTISAN LEGISLATION TO HELP VOLUNTEER FIREFIGHTERS NATIONWIDE
WASHINGTON (May 12, 2009) - In their continued support of firefighters nationwide, Sens. Tom Carper (D-Del.) and Susan Collins (R-Maine) introduced the Volunteer Firefighter and EMS Personnel Job Protection Act today.
This bipartisan legislation would prohibit employers from firing or disciplining volunteer firefighters or EMS personnel who were forced to miss work to respond to a presidentially declared disaster. First responders will no longer be required to make a choice between losing their job and responding to a presidentially declared disaster or emergency.
"This bill is especially important for a state like Delaware that depends so much on its volunteers' services," said Sen. Carper. "These men and women are everyday heroes who should not be punished for bravely answering the call of duty."
"This bipartisan bill is a matter of simple fairness," said Sen. Collins. "The Volunteer Firefighter and EMS Personnel Job Protection Act recognizes that our dedicated volunteer firefighters and emergency medical personnel are critical in times of disaster. By extending some protection to these brave men and women, we can strengthen the protection and life-saving response that they provide to many millions of Americans."
Communities across the country depend on volunteer firefighters and emergency medical services personnel to respond to major disasters. Current law offers these volunteers no protection against punishment by their employers if they miss work when called to respond to a national emergency. This means that firefighters or EMS personnel volunteering their time during major disasters such as 9/11, Hurricane Katrina or even the current wildfires in California, can be disciplined or even fired - all while they put their lives at risk to save others.
WASHINGTON (May 12, 2009) - In their continued support of firefighters nationwide, Sens. Tom Carper (D-Del.) and Susan Collins (R-Maine) introduced the Volunteer Firefighter and EMS Personnel Job Protection Act today.
This bipartisan legislation would prohibit employers from firing or disciplining volunteer firefighters or EMS personnel who were forced to miss work to respond to a presidentially declared disaster. First responders will no longer be required to make a choice between losing their job and responding to a presidentially declared disaster or emergency.
"This bill is especially important for a state like Delaware that depends so much on its volunteers' services," said Sen. Carper. "These men and women are everyday heroes who should not be punished for bravely answering the call of duty."
"This bipartisan bill is a matter of simple fairness," said Sen. Collins. "The Volunteer Firefighter and EMS Personnel Job Protection Act recognizes that our dedicated volunteer firefighters and emergency medical personnel are critical in times of disaster. By extending some protection to these brave men and women, we can strengthen the protection and life-saving response that they provide to many millions of Americans."
Communities across the country depend on volunteer firefighters and emergency medical services personnel to respond to major disasters. Current law offers these volunteers no protection against punishment by their employers if they miss work when called to respond to a national emergency. This means that firefighters or EMS personnel volunteering their time during major disasters such as 9/11, Hurricane Katrina or even the current wildfires in California, can be disciplined or even fired - all while they put their lives at risk to save others.
Monday, May 11, 2009
Collins urges Unity grads to fight climate change
from the Bangor Daily News:
Read more >>
Senator Collins with Mitchell Thomashow, President, Unity College
Senator Collins with Tim Glidden, Chair of the Board of Trustees for Unity College
U.S. Sen. Susan Collins preached to an enthusiastic choir Saturday afternoon when she urged the 90 members of the Unity College graduating class to keep on working for the environment.“Unity grads already know that the key to making a difference is to get involved,” Collins said. “The impact of your actions will make a difference today and for seven generations to come.”
Collins was the keynote speaker at the graduation ceremony, which school officials said was their environmentally greenest ever — and among the greenest in the country.
In her speech, the senator said that for these students, “sitting on the sidelines cannot be an option.” A group of students planned to present her with a letter advocating action for climate change legislation.
“You must be advocates and activists for the causes you believe in,” she said. “Climate change is the most significant environmental challenge facing our planet.”
Read more >>
Senator Collins with Mitchell Thomashow, President, Unity College
Senator Collins with Tim Glidden, Chair of the Board of Trustees for Unity College
Friday, May 8, 2009
Afghan reconstruction oversight bill passes Senate
Bipartisan legislation that would provide the Special Inspector General for Afghanistan Reconstruction (SIGAR) with the authority it needs to quickly hire experienced, well-qualified staff to conduct rigorous oversight of reconstruction efforts in Afghanistan unanimously passed the Senate this week. The legislation was co-authored by Ranking Member of the Senate Homeland Security Committee Susan Collins (R-ME), Chairman Joe Lieberman (I-CT), and Senator Tom Coburn (R-OK). The mission of the SIGAR is to conduct audits and investigations of the humanitarian and reconstruction assistance that U.S. has provided to Afghanistan, which currently stands at about $32 billion since 2001, to eliminate waste, fraud, and abuse.
Original co-sponsors of the legislation also include Carl Levin (D-MI), John McCain (R-AZ), Claire McCaskill (D-MO), and Charles Grassley (R-IA).
Although the SIGAR was sworn into office in July 2008, it has not yet conducted any independent audits or investigations. SIGAR has faced difficultly in hiring the auditors and investigators it needs to conduct necessary oversight. Although authorized a total of 18 auditors, 13 inspectors, and three investigators, SIGAR has only five auditors, two inspectors, and one investigator.
“SIGAR’s efforts to quickly hire experienced staff have been hindered by the often long and difficult government hiring process,” said Senator Collins. “The office’s hiring needs are further complicated by the challenging task of recruiting well-qualified staff willing to spend a year in a dangerous environment. This legislation would provide the SIGAR with the authority to select, appoint, and employ the staff needed to perform effective oversight of Afghanistan reconstruction efforts.”
Senator Lieberman said, “This legislation will allow the SIGAR to use special civil service authorities so he can quickly hire the experienced auditors, inspectors and other professionals he needs to ensure that Afghanistan reconstruction projects are progressing efficiently, effectively, and with a minimum of waste fraud and abuse.”
“SIGAR is a vital part of our Afghanistan reconstruction effort, which is about turning the service and sacrifices of our servicemen and women into sustainable and permanent change on the ground. This legislation will help ensure that our reconstruction effort can improve and adapt quickly, just like the enemy we are fighting,” Dr. Coburn said.
The legislation will allow SIGAR to identify and quickly hire candidates, avoiding civil service requirements that are unnecessary for this unique and temporary organization. Employees hired under this new authority can serve until the termination of the SIGAR’s office.
“If the SIGAR would have had this authority from the office’s inception, it likely would be much further along in conducting its oversight work. It is expected that once the SIGAR can quickly hire the skilled and experienced auditors and investigators it needs, the office’s oversight activities will greatly increase,” said Senator Collins.
The legislation must now be passed by the House of Representatives.
Original co-sponsors of the legislation also include Carl Levin (D-MI), John McCain (R-AZ), Claire McCaskill (D-MO), and Charles Grassley (R-IA).
Although the SIGAR was sworn into office in July 2008, it has not yet conducted any independent audits or investigations. SIGAR has faced difficultly in hiring the auditors and investigators it needs to conduct necessary oversight. Although authorized a total of 18 auditors, 13 inspectors, and three investigators, SIGAR has only five auditors, two inspectors, and one investigator.
“SIGAR’s efforts to quickly hire experienced staff have been hindered by the often long and difficult government hiring process,” said Senator Collins. “The office’s hiring needs are further complicated by the challenging task of recruiting well-qualified staff willing to spend a year in a dangerous environment. This legislation would provide the SIGAR with the authority to select, appoint, and employ the staff needed to perform effective oversight of Afghanistan reconstruction efforts.”
Senator Lieberman said, “This legislation will allow the SIGAR to use special civil service authorities so he can quickly hire the experienced auditors, inspectors and other professionals he needs to ensure that Afghanistan reconstruction projects are progressing efficiently, effectively, and with a minimum of waste fraud and abuse.”
“SIGAR is a vital part of our Afghanistan reconstruction effort, which is about turning the service and sacrifices of our servicemen and women into sustainable and permanent change on the ground. This legislation will help ensure that our reconstruction effort can improve and adapt quickly, just like the enemy we are fighting,” Dr. Coburn said.
The legislation will allow SIGAR to identify and quickly hire candidates, avoiding civil service requirements that are unnecessary for this unique and temporary organization. Employees hired under this new authority can serve until the termination of the SIGAR’s office.
“If the SIGAR would have had this authority from the office’s inception, it likely would be much further along in conducting its oversight work. It is expected that once the SIGAR can quickly hire the skilled and experienced auditors and investigators it needs, the office’s oversight activities will greatly increase,” said Senator Collins.
The legislation must now be passed by the House of Representatives.
Senator Collins introduces bill to regulate Credit Default Swaps
WASHINGTON ¬– Today Sen. Susan Collins, R-Maine, and Sen. Carl Levin, D-Mich., introduced legislation to give federal financial regulators immediate authority to regulate trillions of dollars in swap transactions that continue to be marketed and traded in the United States without adequate government oversight. The Authorizing the Regulation of Swaps Act would repeal statutory prohibitions that currently bar government regulation of swap markets, including credit default swaps.
“Public confidence in our nation’s financial system has been shaken badly by the financial meltdown,” said Senator Collins. “As a former Maine financial regulator, I am convinced that significant regulatory reforms are required to restore public confidence and to ensure that lack of regulation does not allow such a crisis in the future. The current structure of our financial system lacks much needed reporting and transparency requirements in the swaps market, which many experts believe helped contribute to the current financial crisis.”
Sen. Collins continued: “The consequences in our country have been dire: falling home prices, rising foreclosure rates, plunging consumer sales, increased unemployment, and a tremendous erosion of retirement savings. While local credit unions and small community banks are subject to safety-and-soundness regulation, enormous Wall Street financial institutions that have a far greater impact on our economy have not been subject to such regulation. This legislation would clear the way for federal financial regulators to oversee the swaps market. It is a critical component of the overall reform needed to restore confidence in our financial regulatory system.”
“Multi-trillion-dollar unregulated swaps markets are going full bore without government oversight or authority to protect taxpayers from risk,” said Sen. Levin. “Hundreds of billions of taxpayer dollars have already been spent on AIG and others that got in over their head on swaps while regulators’ hands were tied. Taxpayers ended up paying the bill. Our legislation would take the first step to reduce risk by removing statutory barriers and giving federal regulators clear authority to put a cop on the beat in swaps markets. Congress ought to put those cops on the beat right now, without waiting for a possible comprehensive financial reform bill later this year.”
Swaps are typically an agreement between two parties placing a bet on future cash flows. Some swaps bet on whether a stock price, interest rate, commodity price, or currency value will rise or fall; others bet on whether a company will default on payment of a bond. Stock price bets are referred to as equity swaps; bets on whether companies will pay their debts are referred to as credit default swaps.
According to the latest data compiled by the Bank of International Settlements, as of June 2008, worldwide swaps markets included credit default swaps with a total notional value of $57 trillion; commodity swaps with a notional value of $13 trillion; equity swaps with a notional value of $10 trillion; foreign currency swaps with a notional value of $62 trillion; and interest rate swaps with a notional value of $458 trillion.
The bill would remove statutory barriers and allow immediate regulation of all types of swap agreements. The prohibitions to be repealed by the bill were first enacted in the Commodity Futures Modernization Act of 2000, a complex bill that was slipped into a large appropriations bill, without notice, during the last days of the 106th Congress.
Last fall, then-SEC Chairman Christopher Cox called on Congress to take “swift action” to overturn the legal ban on regulating credit default swaps. Even some past opponents of regulating swaps now support federal regulation. For example, former Securities and Exchange Commission (SEC) Chair Arthur Levitt recently said it was a mistake not to have regulated swap agreements. Former Treasury Secretary Robert Rubin said that derivatives, which include swaps, “create systemic risk.” Former Federal Reserve Chairman Alan Greenspan said last October that “serious problems” are associated with credit default swaps.
Top officials in the Obama Administration, including Treasury Secretary Tim Geithner, National Economic Council Director Larry Summers, SEC Chair Mary Schapiro, and Gary Gensler, nominee to head the CFTC, have all called for stronger regulation of over-the-counter transactions, including swap agreements.
Sens. Collins and Levin call the bill an “interim measure intended to clear the way for more specific swaps requirements” in financial reform legislation which could come later this year. They note that the bill would not specify how swaps should be regulated, but would simply provide authority to act.
“Taxpayers are now on the hook for hundreds of billions of dollars in bailouts for companies that engaged in unregulated swaps,” Levin said. “This legislation can bring transparency, accountability, and stability to financial markets that are badly in need of all three, and where government oversight is now prohibited by laws proven to have been a mistake.”
Bill Summary
Repeal Existing Prohibitions on Regulating Swaps. The bill would repeal over a dozen provisions in existing law, including in the Commodity Futures Modernization Act of 2000, which prohibit federal financial regulators from regulating swap agreements.
Authorize the Regulation of Swaps. The bill would give authority to federal financial regulators, including bank, securities and commodities regulators, to oversee and regulate all types of swap agreements, including credit default, commodity, equity, interest rate, and foreign currency swaps. Those regulators could no longer use as an excuse for not regulating swaps the prohibitions which exist in current law. The bill uses the same definition of swaps that is used in current law to prohibit swaps regulation, and would authorize federal oversight and regulation of all exchange-traded and over-the-counter swap agreements, without exception.
Require Consistent Treatment of Swaps. The bill does not require federal regulators to regulate swap agreements -- it merely authorizes such regulation and removes the statutory barriers in place since 2000. Nor does the bill provide any direction to federal regulators on how to regulate swaps other than to require them to consult, work, and cooperate with each other to promote consistency in the treatment of swap agreements.
Establish Interim Authority. By removing existing statutory prohibitions and providing federal financial regulators with authority to oversee and regulate swaps, the bill would eliminate harmful statutory barriers, give regulators immediate interim authority over multi-trillion-dollar swaps markets, and clear the way for more specific swaps requirements in subsequent comprehensive financial reform legislation later this year.
“Public confidence in our nation’s financial system has been shaken badly by the financial meltdown,” said Senator Collins. “As a former Maine financial regulator, I am convinced that significant regulatory reforms are required to restore public confidence and to ensure that lack of regulation does not allow such a crisis in the future. The current structure of our financial system lacks much needed reporting and transparency requirements in the swaps market, which many experts believe helped contribute to the current financial crisis.”
Sen. Collins continued: “The consequences in our country have been dire: falling home prices, rising foreclosure rates, plunging consumer sales, increased unemployment, and a tremendous erosion of retirement savings. While local credit unions and small community banks are subject to safety-and-soundness regulation, enormous Wall Street financial institutions that have a far greater impact on our economy have not been subject to such regulation. This legislation would clear the way for federal financial regulators to oversee the swaps market. It is a critical component of the overall reform needed to restore confidence in our financial regulatory system.”
“Multi-trillion-dollar unregulated swaps markets are going full bore without government oversight or authority to protect taxpayers from risk,” said Sen. Levin. “Hundreds of billions of taxpayer dollars have already been spent on AIG and others that got in over their head on swaps while regulators’ hands were tied. Taxpayers ended up paying the bill. Our legislation would take the first step to reduce risk by removing statutory barriers and giving federal regulators clear authority to put a cop on the beat in swaps markets. Congress ought to put those cops on the beat right now, without waiting for a possible comprehensive financial reform bill later this year.”
Swaps are typically an agreement between two parties placing a bet on future cash flows. Some swaps bet on whether a stock price, interest rate, commodity price, or currency value will rise or fall; others bet on whether a company will default on payment of a bond. Stock price bets are referred to as equity swaps; bets on whether companies will pay their debts are referred to as credit default swaps.
According to the latest data compiled by the Bank of International Settlements, as of June 2008, worldwide swaps markets included credit default swaps with a total notional value of $57 trillion; commodity swaps with a notional value of $13 trillion; equity swaps with a notional value of $10 trillion; foreign currency swaps with a notional value of $62 trillion; and interest rate swaps with a notional value of $458 trillion.
The bill would remove statutory barriers and allow immediate regulation of all types of swap agreements. The prohibitions to be repealed by the bill were first enacted in the Commodity Futures Modernization Act of 2000, a complex bill that was slipped into a large appropriations bill, without notice, during the last days of the 106th Congress.
Last fall, then-SEC Chairman Christopher Cox called on Congress to take “swift action” to overturn the legal ban on regulating credit default swaps. Even some past opponents of regulating swaps now support federal regulation. For example, former Securities and Exchange Commission (SEC) Chair Arthur Levitt recently said it was a mistake not to have regulated swap agreements. Former Treasury Secretary Robert Rubin said that derivatives, which include swaps, “create systemic risk.” Former Federal Reserve Chairman Alan Greenspan said last October that “serious problems” are associated with credit default swaps.
Top officials in the Obama Administration, including Treasury Secretary Tim Geithner, National Economic Council Director Larry Summers, SEC Chair Mary Schapiro, and Gary Gensler, nominee to head the CFTC, have all called for stronger regulation of over-the-counter transactions, including swap agreements.
Sens. Collins and Levin call the bill an “interim measure intended to clear the way for more specific swaps requirements” in financial reform legislation which could come later this year. They note that the bill would not specify how swaps should be regulated, but would simply provide authority to act.
“Taxpayers are now on the hook for hundreds of billions of dollars in bailouts for companies that engaged in unregulated swaps,” Levin said. “This legislation can bring transparency, accountability, and stability to financial markets that are badly in need of all three, and where government oversight is now prohibited by laws proven to have been a mistake.”
Bill Summary
Repeal Existing Prohibitions on Regulating Swaps. The bill would repeal over a dozen provisions in existing law, including in the Commodity Futures Modernization Act of 2000, which prohibit federal financial regulators from regulating swap agreements.
Authorize the Regulation of Swaps. The bill would give authority to federal financial regulators, including bank, securities and commodities regulators, to oversee and regulate all types of swap agreements, including credit default, commodity, equity, interest rate, and foreign currency swaps. Those regulators could no longer use as an excuse for not regulating swaps the prohibitions which exist in current law. The bill uses the same definition of swaps that is used in current law to prohibit swaps regulation, and would authorize federal oversight and regulation of all exchange-traded and over-the-counter swap agreements, without exception.
Require Consistent Treatment of Swaps. The bill does not require federal regulators to regulate swap agreements -- it merely authorizes such regulation and removes the statutory barriers in place since 2000. Nor does the bill provide any direction to federal regulators on how to regulate swaps other than to require them to consult, work, and cooperate with each other to promote consistency in the treatment of swap agreements.
Establish Interim Authority. By removing existing statutory prohibitions and providing federal financial regulators with authority to oversee and regulate swaps, the bill would eliminate harmful statutory barriers, give regulators immediate interim authority over multi-trillion-dollar swaps markets, and clear the way for more specific swaps requirements in subsequent comprehensive financial reform legislation later this year.
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