Obama Announces New Regulatory Plan
Yesterday the Obama administration released its plan for new regulations of the banking and finance industry.
The President’s plan will:
Require that all financial firms that pose a significant risk to the financial system at large are subjected to strong consolidated supervision and regulation Increase market discipline and transparency to make our markets strong enough to withstand system-wide stress and the potential failure of one or more large financial institutions Rebuild trust in our markets by creating the Consumer Financial Protection Agency to focus exclusively on protecting consumers in credit, savings, and payment markets. Provide the government with the tools needed to manage financial crises so it is not forced to choose between bailouts and financial collapse Raise international regulatory standards and improve international coordination
The take-aways:
A description of the new regulatory body, the Financial Services Oversight Council (from Calculated Risk):
We propose the creation of a Financial Services Oversight Council to facilitate information sharing and coordination, identify emerging risks, advise the Federal Reserve on the identification of firms whose failure could pose a threat to financial stability due to their combination of size, leverage, and interconnectedness (hereafter referred to as a Tier 1 FHC), and provide a forum for resolving jurisdictional disputes between regulators.
…
Any financial firm whose combination of size, leverage, and interconnectedness could pose a threat to financial stability if it failed (Tier 1 FHC) should be subject to robust consolidated supervision and regulation, regardless of whether the firm owns an insured depository institution.
…
Capital and management requirements for FHC status should not be limited to the subsidiary depository institution. All FHCs should be required to meet the capital and management requirements on a consolidated basis as well.
Sounds like a good idea!
Tags: Economy, Obama Administration, Regulation
The Office of Thrift Supervision was a good idea too. Bush Sr. had it funded by the banks that it was supposed to regulate and soon the office was being paid off to look the other way.
It is all about the execution and building in enough safeguards that Republicans can;t fuck it up when they get back into office 40 years from now.
Great, lets give a private bank oversight over any company it chooses. Let’s also give them the power to claim these companies, and sell them off at a profit which will not head to the american people. When will people realize that The Federal Reserve is as federal as FedEx. They are a for profit bank that loans our own money to use and we aren’t even allowed to view their meetings.
Before we even think about giving anything else to the Fed, we should pass HR 1207 and S 604 first.
Audit them to find out what has been going on for the past 97 years.
And before you start shouting wingmut, just ask yourself why we shouldn’t know what’s going on? Shouldn’t the institution be subject to audits just like any other institution that has control over our economy?
FYI – It is my policy to shout “wingmut!” first and ask questions second.
Typo FTL…..
I shout “wingmut!” all the time before I ask questions. It’s started to interfere with my job.
Well, we know what people think about my typos, so……
Anyone have anything against auditing the Fed?
I think all federal agencies should have oversight and scrutiny.
oversight and scrutiny are good. Might I suggest that the tidal wave of support for regulation, while mostly well intended, could (read COULD) be the beinnig of moving the non-regulation pendulum off its extreme far right laizzes-faire position…..beware the new momentum, it could swing back so far left of center that excesses and ethical breaches of equal poportion occur from people who just hold different political beliefs than the current right wing thugs that wrecked the current economy…..
if anyone here thinks power doesn’t corrupt…….get real, D or R, money is too temptinf for some, we need to get the systems of regulation o a stasis near the middle, both far right and far left will have dire consequences.
You can relax. The adults are back in charge.
One of the problems with the fed is that it isn’t a federal agency. Yeah, the “adults” are giving away the country to a private bank….
Hooray, more Socialism!
Meanwhile, concerning our Marxist idiot in Venezuela:
VALENCIA, Venezuela
General Motors Corp. is halting production in Venezuela for three months starting Friday. Ford Motor Co.’s subsidiary announced 10 percent cutbacks last week. Other automakers also are shrinking their business, but not because Venezuelans don’t want to buy cars.
They are closing down because the government won’t give them enough dollars to import parts.
It’s a crisis entirely brought on by the currency controls imposed by President Hugo Chavez, Gabriel Lopez, president of Ford Motors for Venezuela and the Andean region, told the Associated Press. “Year after year, we’re shrinking by about 10 percent compared to the year before,” he said.
Mr. Chavez began regulating access to dollars and making it harder for businesses and people to transfer money in 2003 after confidence in his government was shaken by a failed coup and a subsequent strike. Venezuelans must now apply to the currency agency Cadivi for dollars at the official rate of 2.15 bolivars to import goods or take vacations.
These controls have backfired with a vengeance – businessmen, companies and private citizens transferred about $72.7 billion out of Venezuela over the past six years – nearly double the outflow of the six years before that, according to the Central Bank of Venezuela – distorting the economy, fueling inflation and discouraging private investment. (TWTimes)
Brilliant, camrade Chavez…..Bravo! Now, call BO with instructions.
When you are living way over the horizon on the right, the center must look like Marxism to you.
Chavez has absolutely nothing to do with this topic.
“Chavez has absolutely nothing to do with this topic.”
No, but excessive regulation does…from the initial post;
Provide the government with the tools needed to manage financial crises so it is not forced to choose between bailouts and financial collapse .
“…the center must look like Marxism to you.
Nationalizing a major portion of the U.S. auto industry, banks, and the mortgage business along with state-run healthcare is ‘the center?’
I’m just wondering when BO plans to form his ‘civilian’ army, or police state, if you prefer…as he promised during his campaign.
If you come here using Glen Beck’s crazy, paranoid talking points, don’t expect anyone to take you seriously.
I’ve seen Glen Beck maybe twice in my life.
The ‘civilian army’ is on the record…..as is the nationalization of business.
Are you saying its not?
As for ‘not taking me seriously’……Gee, I’m so upset I could just cry.