President Barrack Obama announced his proposal for regulatory reform of the financial services industry. Some of the key components of the proposal include:
-Establishment of a consumer financial protection agency,an independent agency that would write and enforce all consumer rules for banks and non-bank financial companies as well as approve credit, savings, payment and other consumer financial products. Banks would be required to offer "plain vanilla" consumer loan products alongside other products. This agency would also regulate the Community reinvestment Act. States would be able to create stricter standards than those developed by the agency.
-Greater authority by the Federal Reserve to monitor and enforce systemic risk and set capital standards for all institutions.
-Establishment of a financial service oversight council of regulators, to be chaired by U.S. Treasury Department, that would coordinate oversight across the financial system.
-Increase in capital and liquidity requirements for the largest and most interconnected firms.
-Authority to the federal government to resolve and unwind systemically important entities.
-Regulation of over-the-counter derivatives as well as private pools of capital.
-Regulation of credit rating agencies.
-Merger of the Office of the Comptroller of the Currency and the Office of Thrift Supervision--and elimination of thrift charters.
-Empowerment of regulators, including the new consumer financial protection agency, to promulgate executive compensation rules and standards.
Congress will consider the proposal over the coming months. that process began this week when both the Senate and House of representatives held hearings featuring Treasury Secretary Geithner.
Read the full regulatory reform proposal
No comments:
Post a Comment