Research Primer: Framework for Financial System Overhaul
Deloitte has issued a handy summary of the U.S. Treasury’s proposed framework for regulatory reform of the financial system.
Consistent with other announcements a set of guiding principles was put forth with additional details to follow. However, in this instance, U.S. Treasury Secretary Geithner provided specific information on an approach to systemic risk which recommends a new single regulator with broad oversight across the whole financial system.
Deloitte provides a simple summary of the four broad components to the framework:
- Addressing systemic risk: The U.S. Treasury defines systemically important institutions and proposes an orderly process for unwinding them.
- Consumer and investor protection: The U.S. Treasury proposes greater transparency for investor and consumer protection.
- More effective regulation: The gaps between regulatory agencies will be reduced creating a more comprehensive approach.
- Global coordination: The plan proposes greater global coordination.
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
