On Mar 30, 10:31=A0am, "jwpgarr...@[EMAIL PROTECTED]
" <jwpgarr...@[EMAIL PROTECTED]
>
wrote:
> http://www.cnn.com/2008/US/03/28/financial.oversight/index.html
> WA****NGTON (CNN) -- The Federal Reserve would have the power to
> regulate virtually the entire financial industry under a Treasury
> Department proposal to be announced Monday.
> art.paulson.blitzer.cnn.jpg
>
> Treasury Secretary Henry Paulson will introduce the proposals in a
> speech Monday, a spokeswoman says.
>
> The proposal is part of a sweeping overhaul of the government's
> regulatory structure that Treasury Secretary Henry Paulson will
> propose in a speech Monday, said Treasury Department spokeswoman
> Michele Davis.
>
> "I am not suggesting that more regulation is the answer, or even that
> more effective regulation can prevent the periods of financial market
> stress that seem to occur every five to 10 years," Paulson will say,
> according to a text of the speech obtained by The Associated Press.
>
> According to Brookly McLaughlin, another department spokeswoman,
> Paulson will propose these changes:
>
> * Give the Federal Reserve authority to look at the financial status
> of any institution that could affect market stability;
>
> * Merge the Securities and Exchange Commission with the Commodity
> Futures Trading Commission;
>
> * Give stock exchanges more room for self-regulation;
>
> * Consolidate bank supervision into one regulator.
>
> One of the most dramatic changes would extend the powers of the
> Federal Reserve -- designed to regulate the commercial banking
> industry -- to oversight of virtually the entire financial industry.
>
> That change would make the Fed the first responder to a potential
> financial crisis. Currently, several agencies and commissions have
> oversight over various parts of the industry, but none has the broad
> authority.
>
> The proposals have been in the works since June -- two months before
> the current sub-prime mortgage crisis began affecting financial
> markets, Davis said.
> Don't Miss
>
> * Read the executive summary (PDF)
> * Senators want details on Bear Sterns bailout
> * CNNMoney: Paulson defends Fed's rescue of firm
>
> Nevertheless, the proposed change would help the oversight and
> regulatory system catch up with the events of the last two weeks, when
> the Federal Reserve intervened to facilitate the sale of failing
> brokerage Bear Stearns to JP Morgan Chase.
>
> The financial industry's initial response was positive.
>
> Tim Ryan, president and CEO of the Securities Industry and Financial
> Markets Association, called Paulson's proposals "a thoughtful and
> sweeping plan."
>
> "Our present regulatory framework was born of Depression-era events
> and is not well suited for today's environment where billions of
> dollars race across the globe with the click of a mouse," he said.
>
> "That fact, teamed with the current market conditions, result in a
> universal agreement that it is time to modernize and revitalize the
> current system."
>
> Some of the proposals -- broadening the focus of a presidential
> working group on financial markets and tightening oversight on
> mortgage originators -- are classified as short-term recommendations.
>
> Davis said the department does not expect to finish the longer-term
> proposals before President Bush leaves office in January. Instead, she
> said, Paulson is trying to start the process of creating "a better
> regulatory framework so we're in better shape next time" there's a
> rough patch in the economy.
>
> The banking and financial industry regulation structure has been
> developed over decades, from the establishment of the national bank
> charter in 1863 to the creation of the Federal Reserve system in 1913
> to recent changes made in response to other crises.
>
> The ever-expanding complexities of global markets have largely
> outgrown some of the structure's component parts, creating weaknesses
> and redundancies.
>
> Nearly all of the proposals will require the approval of Congress,
> where Democrats are at work on their own proposals.
>
> Sen. Charles Schumer, D-New York, said that Democrats "agree with
> large parts" of Paulson's plan but think the proposals should go
> further.
>
> "Very complex financial instruments have evolved in recent years, like
> [collateral debt obligations] and credit default swaps, which pose
> potential problems in terms of systemic risk," Schumer said. "The
> Treasury Department should address these issues as well."
> ------------------------------------------
>
> This is scary stuff letting the Federal Reserve have this much control
> over the economy. =A0Remember, these are the guys who couldn't stop the
> housing market and faulty debt from exploding in our faces, so why
> would they do any better with the entire system completely at their
> control? =A0Also, unlike Congress, these guys are not accountable to the
> public, so if these guys start pulling a fast one on us there is
> nothing we can do.
>
> I'm not one for conpiracy theories, but this just seems too fishy.
> I'm starting to think the greenspan bubble was created on purpose in
> order to get these kinds of authoritarian regulations into place.
> This recession could have been avoided if the Government focused on
> eliminating the speculative rise on housing prices by targeting land
> speculation and tightening up on lending rules to those who are
> unlikely to pay their debt.
>
> There is abosolutely no need for this kind of control over the economy
> in order to implement counter-cyclical measures. =A0Treasury Secretary
> Henry Paulson will make his speech on this proposal Monday so
> hopefully we can get a better sense of what they have planned.
the fed! amazing, a privately owned, foreign entity to control US
financial markets? My guess its a forced move, these private bankers
have offered us a bail out to some extent if we turn the courntry over
to them,
Phil scott
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