US Congress 'won't derail banking reform'

The chairman of the Securities and Exchange Commission (SEC) has sought to play down speculation that the outcome of last month's US mid-term elections will disrupt the country's financial sector reforms.

According to a report from Reuters, Mary Schapiro told journalists at Northwestern University in Illinois that the agency will continue to enforce the Dodd-Frank legislation unless it is revoked by the incoming Congress.

"The law's passed. And while it could change, obviously, until it does, we have a responsibility to implement the law as it was passed," she explained.

Ms Schapiro added that the SEC has a "long list" of new regulations it intends to introduce to regulate the activities of banks and hedge funds, suggesting that a review of the existing circuit breaker program is a top priority.

Earlier this week, the Wall Street Journal revealed that three brokers who had formerly worked for a Citigroup unit in California had been subpoenaed by the SEC following allegations that clients had been misled over debt funds.

By Gary Cooper