Senate Banking Committee Introduces The Restoring American Financial Stability Act

In a continuing effort by Congress to address the perceived causes of the recent financial crisis, on November 10, 2009, the Senate Committee on Banking, Housing, and Urban Affairs, through its Chairman, Senator Christopher Dodd (D-Conn.), introduced the Restoring American Financial Stability Act in the U.S. Senate.

Mr. Dodd's proposed legislation would cover three principal subjects. First, the proposed legislation, which remains in its draft stages, proposes financial regulatory reform initiatives similar to those outlined in a piece of legislation introduced in the U.S. House of Representatives in October 2009, entitled the Financial Stability Improvement Act. Second, the proposed legislation contains provisions that would mandate certain changes in the areas of executive compensation that would be applicable to public companies. Third, the legislation would impact corporate governance at public companies. As to the latter two topics, Mr. Dodd's proposed