Secretary Paulson on Regulatory Reform

By March 31, 2008Economy

His speech proposing lots and lots of financial regulatory changes is available here. Among the recommendations is merging the SEC and the OTC, but this proposal about authority for the Federal Reserve is likely to draw the most attention:

Market Stability Regulator

  • The Federal Reserve would have the responsibility and authority to gather appropriate information, disclose information, collaborate with the other regulators on rule writing, and take corrective actions when necessary to ensure overall financial market stability. To fulfill its responsibilities to gather information, the Fed would have authority to join in examinations with the prudential and business conduct regulators.
  • This new role will replace the Fed’s more limited, traditional role as the supervisor of financial holding companies, bank holding companies, and certain state-chartered banks.
  • The Fed would have the ability to monitor risks across the financial system.
  • That’s from the Treasury Fact Sheet on the proposal.

    The report is “Blueprint for a Modernized Financial Regulatory Structure.” You can download it here.

    And the news release.

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