Frank: Cuts Could Neutralize Wall Street Reform

Massachusetts Rep. Barney Frank is decrying Republican budget cuts that he said could neutralize many of the financial industry reforms he fought to make law in 2010.

But, Frank says he is optimistic the cuts proposed in the House will never become enacted.

"All these institutions that are largely unregulated if the Republicans' efforts work, will still go unregulated," Frank said. "The law will still be on the books, but they'll go unregulated. Fortunately, I don't think the Senate or president will let that happen."

Cuts approved in the ongoing budget debate do away with funding for securities regulators to implement portions of the Wall Street Reform and Consumer Protection Act, such as the registration of all hedge funds.

"They would actually cut the SEC," the Newton Democrat said. "They'd get less money than in the current year — just crazy. None of the new responsibilities could be carried out."

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