Dodd-Frank H.R. 4173 now before the Senate

by Kurt Schulzke on July 15, 2010

The leviathan Dodd-Frank bill, newly renamed the “Restoring American Financial Stability Act of 2010,” has been taken up by the Senate.  On CSPAN-2, Hawaii Senator Daniel Akaka is now droning on about how “too many investors don’t know the difference between a broker and investment advisor.”  Note well:  Both “Wall Street Reform” and “Consumer Protection” have disappeared from the bill’s title.  My brief analysis of the securities whistleblower provisions, in Act Section 922, tells me that once the bill is signed by the President the SEC should brace for a deluge of securities fraud claims.  These claims will take years to process but the process holds out some hope that securities whistleblowers may receive some compensation for their efforts to bring fraud to light.