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I don't want to get too excited and someone please make a correction if I'm wrong, but this proposal sounds like the real deal as in not constructed solely to please the ABA and other Wall Street concerns.
- stripping the fed of regulatory powers
- ending TBTF
Are the OCC and OTS strongly independent agencies?
http://www.bloomberg.com/apps/news?p...d=a1hrxoQVdybI
By Alison Vekshin
- stripping the fed of regulatory powers
- ending TBTF
Are the OCC and OTS strongly independent agencies?
http://www.bloomberg.com/apps/news?p...d=a1hrxoQVdybI
By Alison Vekshin
June 10 (Bloomberg) -- House Republicans would let non-bank institutions fail in bankruptcy court and strip the Federal Reserve of supervisory powers as part of a plan to revamp U.S. financial regulations, a draft document showed.
Republican lawmakers are also proposing a market stability board, led by the Treasury secretary, to identify risks that may jeopardize the financial system, according to an outline of the plan obtained by Bloomberg News. Republicans in the House Financial Services Committee are scheduled to release a plan June 11. The Obama administration will announce its regulatory proposal June 17.
“From this time forward, businesses should not anticipate the federal government to step in and bail them out,” Representative Scott Garrett, a New Jersey Republican who will help unveil the plan, said yesterday in a telephone interview. “That’s contrary to the fundamental ideas of capitalism and free markets.”
Democrats in control of Congress are holding hearings as they write legislation to overhaul regulations governing Wall Street amid the worst financial crisis since the Great Depression.
The Republican plan from members led by Representative Spencer Bachus of Alabama is an alternative to legislation House Financial Services Committee Chairman Barney Frank is developing.
Republicans will oppose proposals to give the Fed new powers as a systemic-risk regulator, according to the document. Instead, they will propose a “Market Stability and Capital Adequacy Board” led by the Treasury secretary and staffed by outside experts and financial regulatory agencies.
A chapter should be added to the bankruptcy code “that will make ‘orderly failure’ a practical solution for resolving troubled firms,” the document said. The new chapter will give bankruptcy judges the power to stay claims by creditors and counterparties to prevent runs on troubled institutions.
The Republican plan conflicts with a proposal by Federal Deposit Insurance Corp. Chairman Sheila Bair that would let her agency disassemble bank and thrift holding companies. The FDIC already has that power over commercial banks and thrifts.
The Republican plan would combine the Office of the Comptroller of the Currency and the Office of Thrift Supervision, two regulators housed in the Treasury Department, moving supervisory functions of the Fed and FDIC to that agency.
The plan would take government-run mortgage giants Fannie Mae and Freddie Mac out of conservatorship and disassemble them if they are “not financially viable” at the time.
Republican lawmakers are also proposing a market stability board, led by the Treasury secretary, to identify risks that may jeopardize the financial system, according to an outline of the plan obtained by Bloomberg News. Republicans in the House Financial Services Committee are scheduled to release a plan June 11. The Obama administration will announce its regulatory proposal June 17.
“From this time forward, businesses should not anticipate the federal government to step in and bail them out,” Representative Scott Garrett, a New Jersey Republican who will help unveil the plan, said yesterday in a telephone interview. “That’s contrary to the fundamental ideas of capitalism and free markets.”
Democrats in control of Congress are holding hearings as they write legislation to overhaul regulations governing Wall Street amid the worst financial crisis since the Great Depression.
The Republican plan from members led by Representative Spencer Bachus of Alabama is an alternative to legislation House Financial Services Committee Chairman Barney Frank is developing.
Republicans will oppose proposals to give the Fed new powers as a systemic-risk regulator, according to the document. Instead, they will propose a “Market Stability and Capital Adequacy Board” led by the Treasury secretary and staffed by outside experts and financial regulatory agencies.
A chapter should be added to the bankruptcy code “that will make ‘orderly failure’ a practical solution for resolving troubled firms,” the document said. The new chapter will give bankruptcy judges the power to stay claims by creditors and counterparties to prevent runs on troubled institutions.
The Republican plan conflicts with a proposal by Federal Deposit Insurance Corp. Chairman Sheila Bair that would let her agency disassemble bank and thrift holding companies. The FDIC already has that power over commercial banks and thrifts.
The Republican plan would combine the Office of the Comptroller of the Currency and the Office of Thrift Supervision, two regulators housed in the Treasury Department, moving supervisory functions of the Fed and FDIC to that agency.
The plan would take government-run mortgage giants Fannie Mae and Freddie Mac out of conservatorship and disassemble them if they are “not financially viable” at the time.
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