US Treasury's Blueprint for Financial Regulatory Reform
Edmund L. Andrews reports for the New York Times on plans by the US Treasury Department to announce a 'Blueprint for Financial Regulatory Reform' (see executive summary) on Monday. According to the Times, Treasury will propose 'that Congress give the Federal Reserve broad authority to oversee financial market stability, in effect allowing it to send SWAT teams into any corner of the industry or any institution that might pose a risk to the overall system.'
Based a quick read of the executive summary, there are some significant changes being recommended including phasing out thrift charters (and closing the OTS), increasing federal supervision of state-chartered banks, and creation of a "federal charter for systemically important payment and settlement systems ... and should incorporate federal preemption. The Federal Reserve should have primary oversight responsibilities for such payment and settlement systems, should have discretion to designate a payment and settlement system as systemically important, and should have a full range of authority to establish regulatory standards."
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