Good news on the corporate surveillance front. From the G7Group:
Posted by DeLong at December 08, 2002 06:50 PM | Trackback
Sen. Richard Shelby (R-AL) now sits at the helm of the Senate Banking Committee, which oversees the Treasury, the Federal Reserve Board and the SEC. In a speech before the Consumer Federation of America today (assuming it's not snowed out!) Shelby plans to detail his priorities. Expect him to:
- Emphasize privacy. Shelby has long been concerned that consumers lack privacy in the new era of deregulated financial institutions. Shelby doesn't want to unravel deregulation, but he would like to revisit the privacy issue when the Fair Credit Reporting Act that governs the three major credit agencies expires.
- Shelby also plans to zero in on the Sarbanes-Oxley Act. He will argue that tough enforcement is a must for investor confidence to return.
- We do not expect him to mention the ever-important GSEs in this speech in any more than a passing way. Shelby has never been very active on that issue. Accordingly, we expect Rep. Richard Baker (R-LA) to keep the lead on that issue. As usual, Baker will be able to roil the markets with his concern about the risks associated with GSEs. But we don't see legislation moving on this front.
Bottom line: Look for the new Senate Banking chair to emphasize privacy and enforcement of Sarbanes-Oxley as his hot priorities.