Senate Repeals Part of Financial Overhaul (removes excemption of FOIA)

[maddezmom]

By JESSICA HOLZER
WASHINGTON—The Senate voted to repeal a part of the recent financial-regulation overhaul that allowed the Securities and Exchange Commission to keep secret some information it gathers during examinations.

The move is a blow to SEC Chairman Mary Schapiro, who has fought to keep the language that was included in the Dodd-Frank financial law passed in July.

The law says the SEC can withhold information that it obtains through surveillance and some other oversight activities when it is faced with a Freedom of Information Act request.

Sen. Patrick Leahy (D., Vt.) said the Senate's action Tuesday night will "restore stability and accountability to our financial system." He said "care must always be taken to ensure that exemptions to FOIA's disclosure requirements are narrowly and properly applied."

The SEC declined to comment Wednesday on the Senate vote. Officials have said the Dodd-Frank language merely codified existing practice and was meant to ensure that protection already afforded financial institutions will extend to other entities that may not be clearly recognized as financial institutions.

more: http://online.wsj.com/article/SB10001424052748704814204575508571027559554.html?mod=googlenews_wsj