Financial regulatory reform / Stephen E. Moyer, editor.

Format:

Book

Contributor:

Moyer, Stephen E.

Series:

Global recession--causes, impacts and remedies series.

Global recession - causes, impacts and remedies

Language:

English

Subjects (All):

Finance--Government policy--United States.

Finance.

Financial services industry--Government policy--United States.

Financial services industry.

Banks and banking--State supervision--United States.

Banks and banking.

Financial services industry--Law and legislation--United States.

Physical Description:

1 online resource (182 p.)

Edition:

1st ed.

Place of Publication:

New York : Nova Science Publishers, c2010.

Language Note:

English

Summary:

This text examines several key changes in financial markets and products in recent decades and highlights significant limitations and gaps in the existing regulatory system. In addition, the authors identify eight specific areas most urgently in need of reform and make recommendations for the future.

Contents:

Intro

FINANCIAL REGULATORY REFORM

CONTENTS

PREFACE

Chapter 1 FINANCIAL REGULATION: A FRAMEWORK FOR CRAFTING AND ASSESSING PROPOSALS TO MODERNIZE THE OUTDATED U.S. FINANCIAL REGULATORY SYSTEM

SUMMARY

TODAY'S FINANCIAL REGULATORY SYSTEM WAS BUILT OVER THE COURSE OF MORE THAN A CENTURY, LARGELY IN RESPONSE TO CRISES OR MARKET DEVELOPMENTS

CHANGES IN FINANCIAL INSTITUTIONS AND THEIR PRODUCTS HAVE SIGNIFICANTLY CHALLENGED THE U.S. FINANCIAL REGULATORY SYSTEM

A FRAMEWORK FOR CRAFTING AND ASSESSING ALTERNATIVES FOR REFORMING THE U.S. FINANCIAL REGULATORY SYSTEM

End Notes

Chapter 2 SPECIAL REPORT ON REGULATORY REFORM: MODERNIZING THE AMERICAN FINANCIAL REGULATORY SYSTEM: RECOMMENDATIONS FOR IMPROVING OVER-SIGHT, PROTECTING CONSUMERS AND ENSURING STABILITY*

I. EXECUTIVE SUMMARY

1. Lessons from the Past

2. Shortcomings of the Present

3. Recommendations for the Future

II. INTRODUCTION

III. A FRAMEWORK FOR ANALYZING THE FINANCIAL REGULATORY SYSTEM AND ITS EFFECTIVENESS

1. The Promise and Perils of Financial Markets

2. The Current State of the Regulatory System

Failure to Effectively Manage Risk

Failure of private risk management

Failure of public risk management

Failure to Require Sufficient Transparency

Failure to Ensure Fair Dealings

3. The Central Importance of Regulatory Philosophy

IV. CRITICAL PROBLEMS AND RECOMMENDATIONS FOR IMPROVEMENT

1. Identify and Regulate Financial Institutions That Pose Systemic Risk

2. Limit Excessive Leverage in American Financial Institutions

Objectives-based capital requirements

Leverage requirements

Countercyclical capital requirements

Liquidity requirements

3. Modernize Supervision of Shadow Financial System

Regulated clearinghouses

Exchange-traded derivatives.

Public reporting requirements

4. Create a New System for Federal and State Regulation of Mortgages and Other Consumer Credit Products

5. Create Executive Pay Structures That Discourage Excessive Risk Taking

6. Reform the Credit Rating System

7. Make Establishing a Global Financial Regulatory Floor a U.S. Diplomatic Priority

8. Plan for the Next Crisis

V. ISSUES REQUIRING FURTHER STUDY

VI. ACKNOWLEDGMENTS

VII. ABOUT THE CONGRESSIONAL OVERSIGHT PANEL

VIII. ADDITIONAL VIEWS

Richard H. Neiman

Congressman Jeb Hensarling and Former Senator John E. Sununu

Preface

Introduction

Observations on Current State of Financial Regulation

A brief history of the subprime crisis

Monetary policy

Federal policy to expand home ownership

The GSEs

Credit rating agencies

Market behavior

Recommendations for Federal Regulatory Reform

1. Reform the Mortgage Finance System

1.1. Re-charter the housing GSEs as mortgage guarantors, removing them from the investment business

1.2. Simplify mortgage disclosure

1.3. Establish minimum equity requirements for government guaranteed mortgages

1.4. Allow Federal Reserve mortgage lending rules to take effect and clarify the enforcement authority for mortgage origination standards

1.5. Enhance securitization accountability standards

2. Modernize the Regulatory Structure for Financial Institutions

2.1. Consolidate federal financial services regulation

2.2. Modernize the federal charter for insured depository institutions

2.3. Consolidate the SEC and CFTC

2.4. Establish an optional federal charter for national insurance firms

3. Strengthening Capital Requirements and Improving Risk Management

3.1. Strengthen capital requirements for financial institutions

3.2. End conduits and off-balance-sheet accounting for bank assets.

3.3. Adjust the application of mark-to-market accounting rules

3.4. Eliminate the credit rating agencies' cartel

3.5. Establishing a clearinghouse for credit default swaps

4. Address Systemic Risk

4.1. Consolidate the work of the president's working group and the financial stability oversight board to create a cross-agency panel for identifying and monitoring systemic risk

Disagreement with Panel Regulatory Recommendations

APPENDIX: OTHER REPORTS ON FINANCIAL REGULATORY REFORM

CHAPTER SOURCES

INDEX

Blank Page.

Notes:

Bibliographic Level Mode of Issuance: Monograph

Includes bibliographical references and index.

Description based on print version record.

ISBN:

1-61324-610-2

OCLC:

742350397