Bush proposes financial regulation overhaul - Stocks & economy- msnbc.com - 0 views
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Bush administration is proposing a sweeping overhaul of the way the U.S. financial industry is regulated.
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to deal with the problems highlighted by the current severe credit crisis, the new plan would give major new powers to the Federal Reserve
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designate the Fed as the primary regulator of market stability, greatly expanding the central bank's ability to examine not just commercial banks but all segments of the financial services industry.
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proposes consolidating the current scheme of bank regulation.
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Fed would become the government's "market stability regulator," given sweeping powers to gather information on a wide range of institutions so that Fed Chairman Ben Bernanke and his colleagues could better detect where threats to the system might be hiding.
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certain to generate intense scrutiny in Congress and within the financial services industry
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"He is on the money when he calls for a more unified regulatory structure, although we would prefer a single regulator to the three he proposes."
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Fed would serve as the market stability regulator and there would also be a financial regulator that would focus on financial institutions that operate with government guarantees such as deposit insurance for banks.