- Sep 26, 2000
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http://news.yahoo.com/s/ap/200..._ca_st_pe/fed_overhaul
The Bush administration is proposing the biggest overhaul of financial regulation since the Great Depression. The sweeping plan is already drawing intense criticism ? a debate unlikely to be settled until a new president takes office.
The 200-page document, which was to be released Monday by Treasury Secretary Henry Paulson, proposes giving broad new powers to the Federal Reserve to combat the type of severe credit crisis currently gripping financial markets.
It would designate the Fed as a "market stability regulator" and give it the power to examine the books of any financial institution, not just banks, that might pose a threat to the stability of the financial system.
According to a 22-page executive summary obtained by The Associated Press, the plan would also eliminate the Office of Thrift Supervision and the Commodity Futures Trading Commission, merging their functions into other agencies.
The Paulson plan, which the administration has been working on for a year, calls for the eventual creation of three regulatory agencies.
In addition to the Fed as a "market stability regulator," the plan would create a "prudential financial regulator" for the nation's banks, thrifts and credit unions, in place of the five agencies that perform that task now.
The third new agency would regulate business conduct and consumer protection, taking over many of the functions of the Securities and Exchange Commission.
The proposed overhaul would be the most extensive since the current regulatory system was created in response to the 1929 stock market crash and the Great Depression.
Thankfully it is not expected to be passed while Bush is in office.
Bush "regulating" the markets is like putting the fox in charge of the hen house.
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This thread is already addressing the subject. Please use it.
Senior Anandtech Moderator
Common Courtesy
The Bush administration is proposing the biggest overhaul of financial regulation since the Great Depression. The sweeping plan is already drawing intense criticism ? a debate unlikely to be settled until a new president takes office.
The 200-page document, which was to be released Monday by Treasury Secretary Henry Paulson, proposes giving broad new powers to the Federal Reserve to combat the type of severe credit crisis currently gripping financial markets.
It would designate the Fed as a "market stability regulator" and give it the power to examine the books of any financial institution, not just banks, that might pose a threat to the stability of the financial system.
According to a 22-page executive summary obtained by The Associated Press, the plan would also eliminate the Office of Thrift Supervision and the Commodity Futures Trading Commission, merging their functions into other agencies.
The Paulson plan, which the administration has been working on for a year, calls for the eventual creation of three regulatory agencies.
In addition to the Fed as a "market stability regulator," the plan would create a "prudential financial regulator" for the nation's banks, thrifts and credit unions, in place of the five agencies that perform that task now.
The third new agency would regulate business conduct and consumer protection, taking over many of the functions of the Securities and Exchange Commission.
The proposed overhaul would be the most extensive since the current regulatory system was created in response to the 1929 stock market crash and the Great Depression.
Thankfully it is not expected to be passed while Bush is in office.
Bush "regulating" the markets is like putting the fox in charge of the hen house.
--------------------------------------------------
This thread is already addressing the subject. Please use it.
Senior Anandtech Moderator
Common Courtesy
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