NY Fed chief urges global bank framework
By James Politi in Washington and Gillian Tett in London
Published: June 8 2008 23:32 | Last updated: June 8 2008 23:32
Banks and investment banks whose health is crucial to the global financial system should operate under a unified regulatory framework with “appropriate requirements for capital and liquidity”, according to Timothy Geithner, president of the Federal Reserve Bank of New York.
Writing in Monday’s Financial Times, Mr Geithner, a key US policymaker throughout the credit crisis and one of the main architects of the rescue of Bear Stearns, says that the US Federal Reserve should play a “central role” in the new regulatory framework, working closely with supervisors in the US and round the world.
The credit crisis has heightened pressure on US policymakers to consider sweeping changes to a regulatory system for financial institutions which has commercial banks such as JPMorgan Chase and Citigroup regulated by the Fed and investment banks such as Goldman Sachs and Lehman Brothers more loosely regulated by the Securities and Exchange Commission.
http://www.ft.com/cms/s/0/546b1604-3585-11dd-998d-0000779fd2ac.html?nclick_check=1A return to the Glass-Segal Act, repealed in 1999, would be a good place to start.
Read the Mother Jones opinion piece on what deregulation has done to the financial markets.
It's the Deregulation, Stupid
Commentary: Democrats from Carter to Clinton helped roll back the government's regulatory power, but as the economic crisis deepens, "regulation" is no longer such a dirty word.
By James Ridgeway
March 28, 2008
http://www.motherjones.com/commentary/columns/2008/03/deregulation-economic-crisis.htmlhttp://www.streetsmartreport.com/school/Commentaries/My%202006%20Wish%20for%20the%20U.S.%20Financial%20System.html