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[IN] FIN
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TO BUSINESS, AND NATIONAL EDITORS:
Bipartisan Policy Center Task Force Publishes New Recommendations to
Streamline the U.S. Financial Regulatory Structure
WASHINGTON, April 10, 2014 /PRNewswire-USNewswire/ -- The Bipartisan
Policy Center (BPC) today published a new report through its
Regulatory Architecture Task Force with recommendations to make better
sense of the fragmented U.S. financial regulatory system.
The report is authored by the task force's co-chairs Richard H.
Neiman, former New York State Superintendent of Banks and member of
the congressional Troubled Asset Relief Program (TARP) oversight
panel; and Mark Olson, former Governor of the Federal Reserve Board
and former chairman of the Public Company Accounting Oversight Board.
The Dodd-Frank Act responded to several issues highlighted by the most
recent financial crisis, but left certain structural weaknesses within
the U.S. regulatory architecture unaddressed. In light of this
reality, BPC convened the Regulatory Architecture Task Force - one of
five task forces within BPC's Financial Regulatory Reform Initiative.
Specifically, Dodd-Frank missed an important opportunity to
rationalize the U.S. regulatory architecture to reduce organizational
overlap, protect taxpayers, and further strengthen the safety and
soundness of the financial system. BPC's task force made a number of
major recommendations, including:
-- Creating a single banking regulator and examination process to
improve the quality of supervision,
-- Focusing the Federal Reserve on regulation of systemic risk and
altering the bank SIFI threshold and determination process to $250
billion to improve financial stability,
-- Empowering the Financial Stability Oversight Council to prevent
systemic threats and better coordinate regulation,
-- Establishing the Office of Financial Research as a fully
independent agency outside the Treasury Department to better identify
risks to the financial system,
-- Creating a single capital markets regulator to improve
coordination,
-- Creating a federal insurance regulator and charter to improve
financial stability and ensure appropriate regulation of insurance,
and
-- Ensuring independent funding for all financial regulatory agencies.
The recommendations are targeted primarily at federal regulators and
Congress; however, several proposals can be adopted using existing
statutory authority.
"We need to create a streamlined structure with clear lines of
authority and minimal duplication," said co-chair Mark Olson. "This
will ultimately improve the safety and soundness of the financial
system, protect taxpayers, and ensure accountability by financial
institutions."
"Combining the banking regulation and examination efforts of multiple
federal and state supervisors would lead to higher quality regulation
and a stronger banking sytstem," said co-chair Richard Neiman. "This
is a 'win-win' proposal that would benefit our economy and the safety
and soundness of our financial regulatory system."
"We should not wait for another financial crisis before implementing
the thoughtful, forward-thinking road map provided in this report,"
said Aaron Klein, director of BPC's Financial Regulatory Reform
Initiative.
"These recommendations are bold and controversial," said BPC President
Jason Grumet. "Our intent is to spark the debate, critique and
analysis that inform the next major revision to our system of
financial regulation."
This report is the fourth in a series on promoting financial stability
and economic growth. Two additional reports are expected during the
summer of 2014.
Read the full report or watch the video from the report launch. Visit
our website to learn more about BPC's Financial Regulatory Reform
Initiative. Engage on Twitter, using @BPC_Bipartisan, #BPCFinReg, or
@AaronKleinBPC.
About the Bipartisan Policy Center Founded in 2007 by former Senate
Majority Leaders Howard Baker, Tom Daschle, Bob Dole and George
Mitchell, the Bipartisan Policy Center (BPC) is a non-profit
organization that drives principled solutions through rigorous
analysis, reasoned negotiation and respectful dialogue. With projects
in multiple issue areas, BPC combines politically balanced
policymaking with strong, proactive advocacy and outreach. For more
information, please visit www.bipartisanpolicy.org.
Follow BPC: Twitter l Facebook l Instagram
SOURCE Bipartisan Policy Center
-0- 04/10/2014
/CONTACT: Rosemarie Calabro Tully, rcalabrotully@bipartisanpolicy.org, (202) 641-6209 | @RCalabroTully
/Web Site: http://www.bipartisanpolicy.org
CO: Bipartisan Policy Center
ST: District of Columbia
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