U.S. Sen. Carl Levin, D-Mich., chairman of the Permanent Subcommittee on Investigations, issued the following statement today regarding the U.S. Treasury Department’s proposal on regulation of foreign exchange swaps and forwards. In November, Levin urged Treasury Secretary Timothy Geithner not to exempt foreign exchange swaps and forwards from regulation.
“The secretary attempted to strike a balance in his proposal to exempt foreign exchange swaps and forwards from some of the recent reforms in the Dodd-Frank Act. I have concerns that his proposed exemption relies on current industry practices that are inadequate and could be changed by the industry unless the exemption is conditioned upon their remaining in place. I look forward to working with the Treasury Department and regulators to ensure that the final determination will not weaken the essential financial reforms passed last year.”