本文发表在 rolia.net 枫下论坛Draft Details New Rules for Markets
By DAMIAN PALETTA
WASHINGTON -- The Obama administration will propose on Wednesday sweeping changes to the way the U.S. government oversees financial markets and will push Congress to grant new powers to the Federal Reserve to oversee the economy, according to a near final draft of the plan viewed by the Wall Street Journal.
The 85-page proposal is part of an effort by the Obama administration to redraw the rules that govern finance in an attempt to restore confidence in U.S. and global markets. Obama administration officials want the rules to be tough enough to correct some of the damage caused by the financial crisis last year but not so restrictive that they stifle innovation. The paper says the administration has stopped short of calling for all changes that could be seen as "desirable" and pushed only for those they see as "essential" to reform.
"We must act now to restore confidence in the integrity of our financial system," the draft of the administration proposal says. "The lasting economic damage to ordinary families and businesses is a constant reminder of the urgent need to act to reform our financial regulatory system and put our economy on track to a sustainable recovery."
President Barack Obama's plan will touch almost every corner of financial markets, from tougher consumer-protection policies to stricter rules over exotic financial products, such as credit derivatives. The plan would bring many of the products and companies that previously operated outside of the banking system under federal scrutiny.
The administration's proposal would give the government the power to take over and wind down a large financial company, a power that government officials lacked last year when the financial crisis was intensifying. It would also give the central bank more powers over the payments and settlements systems in U.S. financial markets to prevent a breakdown that officials fear could destabilize the economy.
The plan would abolish the Office of Thrift Supervision and create a new national regulator for financial institutions, aimed at making it harder for companies to shop between supervisors.
One new detail is that any large, interconnected company that the government wants to take over and break up could be pushed into government seizure by the Treasury Department, if certain conditions are met. Once taken over, the companies would typically be run by the Federal Deposit Insurance Corp., but the proposal gives the government discretion to change the way this might work. The Treasury has said these powers were necessary, but the details of how they would work were unveiled for the first time in this proposal.
The Obama administration will propose on Wednesday sweeping changes to the way the U.S. government oversees financial markets and will push Congress to grant new powers to the Federal Reserve to oversee the economy.
Hedge funds and other private pools of capital would have to register with the Securities and Exchange Commission. Thousands of financial institutions would be required to hold more capital in reserve to protect against unexpected losses, and companies would also have to retain a portion of the credit risk for loans they have packaged into securities.
The Fed emerges from the plan with the power to oversee from top to bottom almost any financial company in the country, including the firms' foreign affiliates. It would also hand the central bank another victory by allowing it to oversee any commercial company that owns a banking charter known as an industrial loan company.
To soothe lawmakers unhappy with the Fed's growing power, the proposal also recommends capping it in some ways. The administration proposes the creation of a consumer-protection agency, which would have the ability to write rules related to mortgages, credit cards and other consumer products, takes away powers previously held by the central bank.
In addition, the plan would require the Fed to receive approval from the Treasury Department before it took dramatic action to stabilize the economy, which it did several times last year after it cited "unusual and exigent" circumstances.
Write to Damian Paletta at damian.paletta@wsj.com更多精彩文章及讨论，请光临枫下论坛 rolia.net
By DAMIAN PALETTA
WASHINGTON -- The Obama administration will propose on Wednesday sweeping changes to the way the U.S. government oversees financial markets and will push Congress to grant new powers to the Federal Reserve to oversee the economy, according to a near final draft of the plan viewed by the Wall Street Journal.
The 85-page proposal is part of an effort by the Obama administration to redraw the rules that govern finance in an attempt to restore confidence in U.S. and global markets. Obama administration officials want the rules to be tough enough to correct some of the damage caused by the financial crisis last year but not so restrictive that they stifle innovation. The paper says the administration has stopped short of calling for all changes that could be seen as "desirable" and pushed only for those they see as "essential" to reform.
"We must act now to restore confidence in the integrity of our financial system," the draft of the administration proposal says. "The lasting economic damage to ordinary families and businesses is a constant reminder of the urgent need to act to reform our financial regulatory system and put our economy on track to a sustainable recovery."
President Barack Obama's plan will touch almost every corner of financial markets, from tougher consumer-protection policies to stricter rules over exotic financial products, such as credit derivatives. The plan would bring many of the products and companies that previously operated outside of the banking system under federal scrutiny.
The administration's proposal would give the government the power to take over and wind down a large financial company, a power that government officials lacked last year when the financial crisis was intensifying. It would also give the central bank more powers over the payments and settlements systems in U.S. financial markets to prevent a breakdown that officials fear could destabilize the economy.
The plan would abolish the Office of Thrift Supervision and create a new national regulator for financial institutions, aimed at making it harder for companies to shop between supervisors.
One new detail is that any large, interconnected company that the government wants to take over and break up could be pushed into government seizure by the Treasury Department, if certain conditions are met. Once taken over, the companies would typically be run by the Federal Deposit Insurance Corp., but the proposal gives the government discretion to change the way this might work. The Treasury has said these powers were necessary, but the details of how they would work were unveiled for the first time in this proposal.
The Obama administration will propose on Wednesday sweeping changes to the way the U.S. government oversees financial markets and will push Congress to grant new powers to the Federal Reserve to oversee the economy.
Hedge funds and other private pools of capital would have to register with the Securities and Exchange Commission. Thousands of financial institutions would be required to hold more capital in reserve to protect against unexpected losses, and companies would also have to retain a portion of the credit risk for loans they have packaged into securities.
The Fed emerges from the plan with the power to oversee from top to bottom almost any financial company in the country, including the firms' foreign affiliates. It would also hand the central bank another victory by allowing it to oversee any commercial company that owns a banking charter known as an industrial loan company.
To soothe lawmakers unhappy with the Fed's growing power, the proposal also recommends capping it in some ways. The administration proposes the creation of a consumer-protection agency, which would have the ability to write rules related to mortgages, credit cards and other consumer products, takes away powers previously held by the central bank.
In addition, the plan would require the Fed to receive approval from the Treasury Department before it took dramatic action to stabilize the economy, which it did several times last year after it cited "unusual and exigent" circumstances.
Write to Damian Paletta at damian.paletta@wsj.com更多精彩文章及讨论，请光临枫下论坛 rolia.net