Financial Reform 2010 Question

[Aversin]

I have a question regarding the most recent financial regulation passed titled the “Dodd-Frank Wall Street Reform and Consumer Protection Act”.

The Director of the Office of Financial Research has the power to subpoena any information required by the council or its member agencies. The subpoena is signed by the Director, and served by any person designated by him/her[1].

The act also creates a fund in the US Treasury called the “Financial Research Fund” which is primarilly used to pay for any expenses the new office may incur. If the Director decides a portion of the fund is not required he can have the Secretary invest it[2].

@SEC.155 (a) (3) (B)

“Investments shall be made by the Secretary in obligations of the United States or obligations that are guaranteed as to principal and interest by the United States, with maturities suitable to the needs of the Financial Research Fund, as determined by the Director.”

I have read this section a few times and I cannot say I thoroughly understand it and the restrictions it places on which investments can be made. The question of the thread being: Did this act create a government council which can both invest money in the economy and subpoena any/all financial documents at will from any financial institution? This seems like two powers no single government organization should have.
Dodd-Frank Wall Street Reform and Consumer Protection Act (warning PDF)
[1] Page 41 - SEC. 153 (f)
[2] Page 43 - SEC. 155 (a)

[Duckster]

WAG - It means any unallocated budget funding may be invested in US Treasuries until needed. It does not mean investing unallocated funding in the very financial institutions it is supposed to regulate and provide oversight.

[China_Guy]

Duckster - that’s pretty much it in plain English. I would add only that the duration of the investment should be in line with budgetary needs (Eg, no investing in 30 year bonds)