U.S. Congress July 15 of the financial sector reform bill passed the final version of President Obama (Barack Obama) will be in a few days to sign the bill became law. But the bill for the relatively limited impact of the financial sector, and selected according to Obama in charge of candidates for the new regulatory body, and the existing regulatory bodies in the next few years to implement and enact new legislation, the bill's influence may be further weakened.
"Restore financial stability in the United States Bill" (Restoring American Financial Stability Act, RAFSA) did not provide a complete blueprint, outlined the scope of financial reform. The bill to the new regulatory regime left many important not finalized, without amendment of the details. It is estimated the bill at least 75% of the content has not yet finalized.
Consumer Financial Protection Agency (Consumer Financial Protection Bureau, CFPB). New Consumer Financial Protection Agency originally proposed the President than Barack Obama has been greatly diminished. Has a new emerging trends in consumer financial protection, so CFPB consumers should prefer the position of regulatory balance would be difficult to break; CFPB at the Federal Reserve (Fed) internally, rather than a structure entirely independent body, will be Obama President Ma appointed to lead independent director.
While in theory this streamlined structure allows the design and implementation of consumer-oriented organization, but the structural organization of various balance will prevent CFPB efficiency. Other regulatory bodies have the power to appeal the financial system they believe will endanger the health or stability of the CFPB decision.
Sunday, December 26, 2010
Obama signed financial reforms bill
Obama signed today from the largest since the Great Depression of the financial reform bill, this year's midterm elections will be debating how to implement the bill.
This marks the largest since the Great Depression during the financial regulatory system into a corrective bill to become law, regulators will have the largest U.S. bank to introduce new fees and restrictions on its business activities; the total 450 trillion U.S. dollars of derivatives implementation of the new market restrictions; and mortgages and credit card products for the establishment of a new consumer protection agency.
Bill signing ceremony held at the Reagan Building in Washington, Obama said at the ceremony, "This reform will help promote innovation rather than stifle innovation. The purpose of the reform is to make everyone follow the same rules, so that enterprises in the compete on price and quality, rather than compete in the deception and a trap. "
Obama signed the end of the year-long legislative struggle, through the financial crisis of 2008 and proposed corrective measures, the financial crisis has led to the bankruptcy of Lehman Brothers Holdings Inc., also caused the collapse of Wall Street and throughout the United States economy.
This marks the largest since the Great Depression during the financial regulatory system into a corrective bill to become law, regulators will have the largest U.S. bank to introduce new fees and restrictions on its business activities; the total 450 trillion U.S. dollars of derivatives implementation of the new market restrictions; and mortgages and credit card products for the establishment of a new consumer protection agency.
Bill signing ceremony held at the Reagan Building in Washington, Obama said at the ceremony, "This reform will help promote innovation rather than stifle innovation. The purpose of the reform is to make everyone follow the same rules, so that enterprises in the compete on price and quality, rather than compete in the deception and a trap. "
Obama signed the end of the year-long legislative struggle, through the financial crisis of 2008 and proposed corrective measures, the financial crisis has led to the bankruptcy of Lehman Brothers Holdings Inc., also caused the collapse of Wall Street and throughout the United States economy.
American financial reform is not enough to prevent crisis
Financial industry has always been the core competence areas of the United States. In triggering the global financial crisis devastated the global economy, the U.S. tried to restore its leading position in the financial industry, want to be held at the end of the year the Group of Twenty meeting, re-raise right to speak. Financial reform bill recently passed, that is, toward this goal is a crucial step.
The bill is intended to restructure the financial regulatory framework, including the establishment of "Financial Stability Oversight Committee", and strengthen the protection of the rights of consumers and shareholders, emphasizing the prevention of systemic risk. These are in the right direction, but the breadth and depth of reform are inadequate, it may not be able to prevent financial crisis from happening again.
First, the "two rooms" (Fannie Mae and Freddie Mac, the largest U.S. mortgage finance institutions) on the formation of the U.S. financial bubble bear a heavy responsibility, but the new bill passed the "two rooms" there is no specific reform measures . This suggests that the political and economic relations between the United States Congress for financial institutions in complex or difficult to carry out drastic reforms.
Second, the reform bill on the "systemic risk" lack of effective prevention mechanism. The reason why the financial crisis, the U.S. government to spend taxpayer money several times in the rescue of financial institutions, mainly in order to reduce "systemic risk", the result will lead to "too big to fail," the strange phenomenon, so that large financial institutions with impunity, deepening moral hazard.
The bill is intended to restructure the financial regulatory framework, including the establishment of "Financial Stability Oversight Committee", and strengthen the protection of the rights of consumers and shareholders, emphasizing the prevention of systemic risk. These are in the right direction, but the breadth and depth of reform are inadequate, it may not be able to prevent financial crisis from happening again.
First, the "two rooms" (Fannie Mae and Freddie Mac, the largest U.S. mortgage finance institutions) on the formation of the U.S. financial bubble bear a heavy responsibility, but the new bill passed the "two rooms" there is no specific reform measures . This suggests that the political and economic relations between the United States Congress for financial institutions in complex or difficult to carry out drastic reforms.
Second, the reform bill on the "systemic risk" lack of effective prevention mechanism. The reason why the financial crisis, the U.S. government to spend taxpayer money several times in the rescue of financial institutions, mainly in order to reduce "systemic risk", the result will lead to "too big to fail," the strange phenomenon, so that large financial institutions with impunity, deepening moral hazard.
Financial reform should attach importance to the process
Sandra Zhanbo Shi has written an important article. He made based on the theory of financial deepening, financial sector development and reform of the order is very important. First to focus on development of the financial industry's most important and basic in some areas, including money market and interbank market, then is the government bond market. In the government bond market-related hardware and software infrastructure is established, can proceed with the development of corporate bond [126.82 -0.05%] securities market. Since then, the development of stock and derivatives markets.
The technology of this ideal model is not wrong, but the problem is, reality and theory are often very different. I understand that the financial crisis: only by knowing the real economy, the financial sector institutional structure and incentives related to political economy, it may be to understand the real financial reform.
Over the years, IMF and World Bank have been trying to implement in emerging market economies to free market, democratic system as the core of the Washington Consensus, some successful, some failed. The reason why many aid projects fail, and some reforms wander why not before, it is because, due to the ideal model of perfect market assumptions do not apply in those countries.
Even during the financial crisis, politicians have a strong enough will, reformers are worthy of this task is difficult to find high-quality team to promote the difficult reforms. In many emerging market economies, driven by complex and driven by political corruption, a bloated and inefficient bureaucracy are the first to be responsible for the crisis.
The technology of this ideal model is not wrong, but the problem is, reality and theory are often very different. I understand that the financial crisis: only by knowing the real economy, the financial sector institutional structure and incentives related to political economy, it may be to understand the real financial reform.
Over the years, IMF and World Bank have been trying to implement in emerging market economies to free market, democratic system as the core of the Washington Consensus, some successful, some failed. The reason why many aid projects fail, and some reforms wander why not before, it is because, due to the ideal model of perfect market assumptions do not apply in those countries.
Even during the financial crisis, politicians have a strong enough will, reformers are worthy of this task is difficult to find high-quality team to promote the difficult reforms. In many emerging market economies, driven by complex and driven by political corruption, a bloated and inefficient bureaucracy are the first to be responsible for the crisis.
The U.S. financial reform bill emerged
Politicians, executives, academics are likely to tell lies, but the market is always right, in the U.S. financial reform bill passed in Congress the day, Goldman Sachs lost $ 550,000,000 settlement with the SEC, but Goldman Sachs has the stock after hours rose nearly 5%.
July 15, 2010, the U.S. Senate by 60 votes to 39 votes to pass as long as 2315's "Dodd - Frank Wall Street Reform and Consumer Protection Act" (Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010), The bill was sent to the president after a week and was signed into force on the desktop.
Years ago, part of the shares is expected to soar! Confidential! Market institutions will soon be reversed capital flows have changed dramatically! Main funding is plotting a new layout 3 years ago, Wall Street, the United States and the world economy to the brink of collapse, how to make the bank smaller risk, how to protect the interests of consumers, the new bill became the most important content.
New bill requires lenders to provide mortgage loans in the agreement prior to a comprehensive record of the borrower's income. From the official point of view, this can put an end to "lie loans." Re seeking a new bill in the commercial banks, investment banking and insurance business to build a wall between to prevent conflicts of interest. The new Act requires banks to raise the cash reserve ratio of overseas assets. Establishment of the Consumer Financial Protection Agency. To prevent taxpayers relief fund so that more financial firms fail to solve the problem through bankruptcy. Financial derivatives, hedge funds and rating companies will be subject to more stringent regulation. Enterprises choose their products or services the freedom rating rating companies will be limited.
July 15, 2010, the U.S. Senate by 60 votes to 39 votes to pass as long as 2315's "Dodd - Frank Wall Street Reform and Consumer Protection Act" (Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010), The bill was sent to the president after a week and was signed into force on the desktop.
Years ago, part of the shares is expected to soar! Confidential! Market institutions will soon be reversed capital flows have changed dramatically! Main funding is plotting a new layout 3 years ago, Wall Street, the United States and the world economy to the brink of collapse, how to make the bank smaller risk, how to protect the interests of consumers, the new bill became the most important content.
New bill requires lenders to provide mortgage loans in the agreement prior to a comprehensive record of the borrower's income. From the official point of view, this can put an end to "lie loans." Re seeking a new bill in the commercial banks, investment banking and insurance business to build a wall between to prevent conflicts of interest. The new Act requires banks to raise the cash reserve ratio of overseas assets. Establishment of the Consumer Financial Protection Agency. To prevent taxpayers relief fund so that more financial firms fail to solve the problem through bankruptcy. Financial derivatives, hedge funds and rating companies will be subject to more stringent regulation. Enterprises choose their products or services the freedom rating rating companies will be limited.
American treasury officials urged the global strengthen cooperation in financial reform
U.S. Treasury official urges global financial reform Brainerd to strengthen collaboration, and warned that if the upcoming G20 summit is not in control of the exchange rate tensions, then the war broke out the exchange rate.
Integrated Media October 11 reported that the U.S. Treasury for International Affairs Deputy Minister Lal - Brainerd (Lael Brainard) Urges States to strengthen the financial restructuring of international cooperation, and exchange rate manipulation to trade and economic growth of warning.
Brainard said the improved financial supervision and greater international cooperation is to build a more robust and more resilient financial system, a key factor.
Brainerd at the International Monetary Fund (International Monetary Fund, referred to as the IMF) warned after the Annual Meeting, if the Group of Twenty (G20) summit is not forthcoming tension control the exchange rate, then the world will exchange war might break out.
Integrated Media October 11 reported that the U.S. Treasury for International Affairs Deputy Minister Lal - Brainerd (Lael Brainard) Urges States to strengthen the financial restructuring of international cooperation, and exchange rate manipulation to trade and economic growth of warning.
Brainard said the improved financial supervision and greater international cooperation is to build a more robust and more resilient financial system, a key factor.
Brainerd at the International Monetary Fund (International Monetary Fund, referred to as the IMF) warned after the Annual Meeting, if the Group of Twenty (G20) summit is not forthcoming tension control the exchange rate, then the world will exchange war might break out.
Us-european financial reform game map
The current global economic situation variables increased. Recovery results in order to consolidate and reshape financial competitiveness and development of the financial right to speak, the U.S. and Europe to actively promote the reform of the financial mechanism. Following the completion of the United States on July 21 "Dodd-Frank Wall Street Reform and Consumer Protection Law", European development effort began in September. The choice of monetary policy has been rising to the national interests of the game, "the water."
U.S. financial reform is the direct cause of the subprime mortgage crisis, but deeper look, is its economic structure and growth model has to unsustainable proportions. How to guide the financial sector for economic transformation services to address the problem of excessive expansion of the virtual economy, for enterprises to establish an open and competitive financing environment, as the U.S. financial reform, the basic starting point. Europe's financial reforms in the subprime mortgage crisis and experienced a sovereign debt crisis in Europe after the double blow, it shows both the fiscal and financial system, the characteristics of remodeling.
United States and Europe in some ways the two sides the same financial demands. Such as raising capital, leverage, liquidity, risk control, regulatory standards, strengthen bank capital and liquidity standards. This also contributed to the Sept. 12 Basel III key elements of the smooth baked.
U.S. financial reform is the direct cause of the subprime mortgage crisis, but deeper look, is its economic structure and growth model has to unsustainable proportions. How to guide the financial sector for economic transformation services to address the problem of excessive expansion of the virtual economy, for enterprises to establish an open and competitive financing environment, as the U.S. financial reform, the basic starting point. Europe's financial reforms in the subprime mortgage crisis and experienced a sovereign debt crisis in Europe after the double blow, it shows both the fiscal and financial system, the characteristics of remodeling.
United States and Europe in some ways the two sides the same financial demands. Such as raising capital, leverage, liquidity, risk control, regulatory standards, strengthen bank capital and liquidity standards. This also contributed to the Sept. 12 Basel III key elements of the smooth baked.
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