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20 March 2008

US Congressmen call for significant changes in financial services regulation




The US Congress committee chairman on Financial Services, Barney Frank, called to consider establishing a “Financial Services Risk Regulator” that has the capacity and power to assess risk across financial markets regardless of corporate form and to intervene when appropriate. 

 

Frank also called to consolidate the duplicative regulatory structure, and reassess capital, margin and leverage requirements.

 

Vito Fossella, Chairman of the “Capital Markets, Economic and Information Security” Task Force under the House Republican Policy Committee, said that the system of financial regulation in the U.S. is outdated and no longer adequate in effectively overseeing a modernized and increasingly complex industry.

 

“The current structure results in duplications, inefficiencies and regulatory arbitrage that inhibit the ability of regulators to monitor systemic risk and ensure safety and soundness. These principles will serve as the guide as I draft legislation to modernize and rationalize the oversight of our system of financial regulation.”

 

Fossella said he intends to introduce legislation shortly that would create:

- Greater supervisory consistency and effectiveness to strengthen systemic oversight;

- Greater cooperation and information sharing among regulatory agencies;

- Reductions in duplications and inefficiencies that create undue regulatory burdens;

- Shift towards a more prudential, principles-based system of supervision, and

- Preservation of regulatory specialization and competition

 

Press release Barney Frank

Press release Vito Fosella

Further information

 



© US Congress


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