Modernizing financial regulation / Lawrence P. Cowell, editor.

Format:

Book

Contributor:

Cowell, Lawrence P.

Series:

Financial institutions and services.

Financial institutions and services

Language:

English

Subjects (All):

Financial services industry--United States.

Financial services industry.

Financial institutions--Law and legislation--United States.

Financial institutions.

Banking law.

Physical Description:

1 online resource (195 p.)

Edition:

1st ed.

Place of Publication:

New York : Nova Science Publishers, Inc., c2010.

Language Note:

English

Summary:

Explores a framework for modernising the outdated US financial regulatory system to help policymakers weigh various regulatory reform proposals and consider ways in which the regulatory system could be made more effective and efficient.

Contents:

Intro

MODERNIZING FINANCIAL REGULATION

CONTENTS

PREFACE

FEDERAL FINANCIAL SERVICES REGULATORY CONSOLIDATION: AN OVERVIEW

SUMMARY

INTRODUCTION

THE MAJOR FINANCIAL SERVICES REGULATORS

SAFETY AND SOUNDNESS REGULATIONS

BACKGROUND

U.S. FUNCTIONAL AND COMPETITIVE REGULATORY STRUCTURE

Regulatory Competition in Banking

Regulatory Competition in Insurance

Regulatory Competition in Securities

Regulatory Competition in Commodity Futures and Options

THE PROBLEM OF REGULATING IN THE CURRENT ENVIRONMENT

PROPOSED CONSOLIDATION SOLUTIONS

Banking

Insurance

Securities

Consolidation in Other Countries

Financial Services Authority of the United Kingdom

The Financial Services Agency of Japan

The Federal Financial Supervisory Authority (BaFin)

U.S. REGULATORS ARE TRYING TO SPEAK WITH ONE VOICE

SOME IMPLICATIONS

End Notes

FINANCIAL REGULATION: INDUSTRY TRENDS CONTINUE TO CHALLENGE THE FEDERAL REGULATORY STRUCTURE

WHY GAO DID THIS STUDY

WHAT GAO RECOMMENDS

WHAT GAO FOUND

ABBREVIATIONS

RESULTS IN BRIEF

MEASURING THE COSTS AND BENEFITS OF REGULATION HAS BEEN DIFFICULT, COMPLICATING EFFORTS TO REDUCE REGULATORY BURDEN

Regulators and the Financial Services Industry Face Challenges Measuring Regulatory Costs and Benefits

Concerns Exist that Regulation Could Hinder Market Efficiency

U.S. Regulators Have Reviewed Existing Regulations

Forum Participants Shared Concerns Regarding Regulatory Burden

We Have Recommended Improved Review of Regulations

DEVELOPMENTS IN A DYNAMIC FINANCIAL INDUSTRY ENVIRONMENT POSE CHALLENGES TO THE FEDERAL FINANCIAL REGULATORY STRUCTURE

Aspects of the Current Regulatory Structure Have Contributed to a Strong Financial System but also Create Challenges.

Key Trends Have Changed the Financial Services Industry

Recent Legislative Changes Have Affected the Financial Services Industry

Recent Industry Changes Demonstrate the Challenges Confronting Financial Regulators

Consolidated Supervision of Holding Companies

ILC Holding Company Regulation

Basel II Implementation

OCC Preemption and Charter Choice

SEC and CFTC Joint Jurisdiction over Certain Products

Regulators Have Often Collaborated to Respond to Regulatory Challenges but More Could be Done

Accountability for Identifying and Responding to Risks that Span Financial Sectors Is Not Clearly Defined

OPTIONS TO CHANGE THE FEDERAL FINANCIAL REGULATORY STRUCTURE

Modernizing the Financial Regulatory System Remains a Challenge

Some Lessons May Be Learned from the United Kingdom's FSA Model which Emphasizes a Principles-based Approach to Regulation

Clear, Consistent Regulatory Goals Are Important Steps to Improve Regulatory Effectiveness

Treasury Has Announced Plans to Consider Regulatory Structure Modernization

APPENDIX I: PARTICIPANTS IN THE JUNE 11, 2007, COMPTROLLER GENERAL'S FORUM

APPENDIX II: COMMENTS FROM THE CHAIRMAN OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

APPENDIX III: COMMENTS FROM THE CHAIRMAN OF THE NATIONAL CREDIT UNION ADMINISTRATION

Related GAO Products

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

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

Thrifts and Credit Unions

Futures

Secondary Mortgage Markets

Gramm-Leach-Bliley.

Accounting and Auditing

Other Financial Institutions

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

Conglomeration and Increased Interconnectedness in Financial Markets Have Created Difficulties for a Regulatory System That Lacks a Systemwide Focus

Existing Regulatory System Failed to Adequately Address Problems Associated with Less-Regulated Entities That Played Significant Roles in the U.S. Financial System

Activities of Nonbank Mortgage Lenders Played a Significant Role in Mortgage Crisis but Were Not Adequately Addressed by Existing Regulatory System

Activities of Hedge Funds Can Pose Systemic Risks not Recognized by Regulatory System

Credit Rating Agency Activities Also Illustrate the Failure of the Regulatory System to Address Risks Posed by Less-Regulated Entities

Regulatory System Failed to Identify Risks Associated with Special-Purpose Entities

CREDIT RATINGS AND THE FINANCIAL CRISIS

New and Complex Financial Products and Services Also Revealed Limitations in the Regulatory Structure

New Complex Securitized Products Have Created Difficulties for Institutions and Regulators in Valuing and Assessing Their Risks

Growth in OTC Derivatives Markets, Which Feature Complex Products That Are Not Regulated, Raised Regulator Concerns about Systemic Risk and Weak Market Infrastructure

New Complex Products Have Also Created Challenges for Regulators in Ensuring Adequate Investor and Consumer Protection

Increased Complexity and Other Factors Have Challenged Accounting Standard Setters and Regulators

Globalization Will Further Challenge the Existing U.S. Regulatory System

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

1. Clearly defined regulatory goals.

2. Appropriately comprehensive.

3. Systemwide focus.

4. Flexible and adaptable

5. Efficient and effective.

6. Consistent consumer and investor protection.

7. Regulators provided with independence, prominence, authority, a

8. Consistent financial oversight.

9. Minimal taxpayer exposure.

COMMENTS FROM AGENCIES AND OTHER ORGANIZATIONS, AND OUR EVALUATION

APPENDIX I: SCOPE AND METHODOLOGY

APPENDIX II: AGENCIES AND OTHER ORGANIZATONS THAT REVIEWD THE DRAFT REPORT

APPENDIX III: COMMENTS FROM THE AMERICAN BANKERS ASSOCIATION

APPENDIX IV: COMMENTS FROM THE AMERICAN COUNCIL OF LIFE INSURERS

APPENDIX V: COMMENTS FROM THE CONFERENCE OF STATE BANK SUPERVISORS

APPENDIX VI: COMMENTS FROM CONSUMERS UNION

APPENDIX VII: COMMENTS FROM THE CREDIT UNION NATIONAL ASSOCIATION

APPENDIX VIII: COMMENTS FROM THE FEDERAL DEPOSIT INSURANCE CORPORATION

APPENDIX IX: COMMENTS FROM THE MORTGAGE BANKERS ASSOCIATION

APPENDIX X: COMMENTS FROM THE NATIONAL ASSOCIATION OF FEDERAL CREDIT UNIONS

APPENDIX XI: COMMENTS FROM THE CENTER FOR RESPONSIBLE LENDING, THE NATIONAL CONSUMER LAW CENTER, AND THE U.S. PIRG

STATEMENT OF GENE L. DODARO, ACTING COMPTROLLER GENERAL OF THE UNITED STATES, BEFORE THE CONGRESSIONAL OVERSIGHT PANEL ON FINANCIAL REGULATION

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

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

1. Clearly defined regulatory goals.

2. Appropriately comprehensive

3. Systemwide focus.

4. Flexible and adaptable

7. Regulators provided with independence, prominence, authority,

APPENDIX I: AGENCIES AND OTHER ORGANIZATIONS THAT REVIEWED THE DRAFT REPORT

SPEECH BY TIMOTHY F. GEITHNER, PRESIDENT AND CEO, FEDERAL RESERVE BANK OF NEW YORK, AT THE ECONOMIC CLUB OF NEW YORK, JUNE 9, 2008

REDUCING SYSTEMIC RISK IN A DYNAMIC FINANCIAL SYSTEM

Why Was the System so Fragile?

FIRST REPAIR, THEN REFORM

What Should Be Done to Reduce These Vulnerabilities?

REGULATORY POLICY

REGULATORY STRUCTURE

CRISIS MANAGEMENT

CONCLUSION

CHAPTER SOURCES

INDEX.

Notes:

Description based upon print version of record.

Includes bibliographical references and index.

Description based on print version record.

ISBN:

1-61728-071-2

OCLC:

923662417