WASHINGTON, June 18 (Xinhua) -- U.S. Treasury Secretary Timothy Geithner said on Thursday that the Federal Reserve is best suited to become a super regulator to oversee large institutions whose failure could threaten the stability of the entire system.
U.S. Treasury Secretary Timothy Geithner testifies before the Senate Banking Committee on administration's vision for reshaping U.S. financial regulation, the biggest regulatory revision to the U.S. financial system since the 1930s, on Capitol Hill in Washington, capital of the United States, June 18, 2009. Geithner said on Thursday that the Federal Reserve is best suited to become a super regulator to oversee large institutions whose failure could threaten the stability of the entire system. (Xinhua Photo) Photo Gallery>>>
"The Federal Reserve is best positioned to play that
role," said Geithner in testimony before the Senate Banking Committee. "It
already supervises and regulates bank holding companies, including all major
U.S. commercial and investment banks."
"Our plan gives a modest amount of additional
authority -- and accountability -- to the Fed to carry out that mission. But it
also takes some authority away," said the Treasury chief.
According to the rules unveiled by U.S. President
Barack Obama Wednesday, large, interconnected firms whose failure would threaten
the financial system's overall stability would face new consolidated supervision
by the Federal Reserve.
The reform also will create a council of regulators
with broad coordination responsibility across the financial system.
"This Council will fill gaps in the regulatory
structure where they exist. It will improve coordination of policy and
resolution of disputes," Geithner explained in the testimony. "And, most
importantly, it will have the power to gather information from any firm or
market to help identify emerging risks."
"The Council does not have the responsibility for
supervising the largest, most complex and interconnected institutions. The
reason is simple: that is a specialized task, which requires tremendous
institutional capacity and organizational accountability," said Geithner.
"Nor would the council be an appropriate first
responder in a financial emergency. You don't convene a committee to put out a
fire," he added.
WASHINGTON, June 17 (Xinhua) -- U.S. President Barack
Obama Wednesday unveiled new "rules of the road" for the nation's outdated
financial system, the most significant regulatory transformation since the Great
Depression in 1930s.
Under the plan, the government will make the Fed a
systemic risk regulator to oversee large institutions whose failure could
threaten the stability of the entire system. Full story
NEW YORK, June 17 (Xinhua) -- As the Obama
Administration released its proposal to make the most sweeping changes in bank
regulation in 75 years, Wall Street differed on the effect of the overhaul plan.
"We applaud the Obama Administration's proposal to
overhaul the financial regulatory structure as a critical step toward restoring
trust in capital markets," said Duncan L. Niederauer, chief executive officer of
NYSE Euronext Wednesday. Full story
NEW YORK, June 17 (Xinhua) -- The 10 large U.S. banks
that were approved to repay about 68 billion U.S. dollars of government rescue
fund early are expected to finish their payment on Wednesday.
According to separate statements from the banks,
JPMorgan Chase& Co. repaid 25 billion dollars, and New York-based Morgan
Stanley and Goldman Sachs Group Inc. each gave back 10 billion dollars. U.S.
Bancorp refunded 6.6 billion dollars and BB&T Corp. paid 3.1 billion
dollars. Full story
BEIJING, June 18 (Xinhua) -- Almost simultaneously, the
two major economies across the Atlantic Ocean, the United States and the
European Union, start to lift the curtain on a major overhaul of their
respective financial systems.
The efforts are deemed as the strongest attempts to revamp
the shattered economy since the Great Depression of the 1930s. Full
story
