Two congressmen battle portions of Dodd-Frank publicly
House Financial Services Committee Chairman Rep. Jeb Hensarling, R-Texas, and Rep. Scott Garrett, R-NJ, sent a letter to the Securities and Exchange Commission questioning new regulatory powers given to the agency under Dodd-Frank to oversee private equity funds.
The letter provides a glimpse into how a Hensarling led Financial Services Committee will deal with the Dodd-Frank Act, which had an impact on the entire mortgage finance system, as well as the securities industry.
Fox Business has more on Hensarling’s concerns:
“The SEC previously did not have authority to regulate private equity funds, or other private funds such as hedge funds. But that changed in 2010 with the passage of the Dodd-Frank Wall Street reform law.
The law required private fund advisers with larger sums of money under management to register with the SEC for the first time. Amid concerns that some large funds could also pose systemic risks to the broader marketplace, Dodd-Frank also requires advisers of larger hedge funds and private equity funds to submit to regulators confidential data about their use of leverage and the makeup of their portfolios.”