Stabenow Addresses Dodd-Frank Act

Stabenow Addresses Dodd-Frank Act

Chairwoman says working with regulators is a must.

Last year, Congress passed the Dodd-Frank Act to address the abuses in the Swaps Market and it gives significant authority to regulators to prevent future crises.  The Senate Ag Committee has jurisdiction in overseeing Title VII of the act. Chairwoman Debbie Stabenow, D-Mich., says her committee will make sure reforms encourage job growth and much-needed investment. She says the decisions made in the coming months will shape the derivatives regulatory landscape and global financial markets for decades to come. 

Stabenow says the agriculture community knows better than anyone about the importance of managing risk and of functioning markets. During debate of the bill, Stabenow says, she fought to ensure the bill preserved the ability of American farmers, co-ops, manufacturers, utilities, and businesses to use derivatives to hedge legitimate business risks. These companies use derivatives to protect themselves from fluctuating currency exchange rates, interest rates, fuel prices, and commodity prices. 

"Dodd-Frank was fundamental, necessary, historic reform," Stabenow said. "But as we move towards a new normal, we need to work with the regulators, reiterating the message that these markets must function globally and that the new swaps regime must mitigate risk, not create it."

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