| |||||||||||||||||||||||
| |||||||||||||||||||||||
 There is a lot of online chatter concerning U.S. Treasury Secretary Henry Paulson's plan to overhaul the nation's financial regulatory structure. The plan presents both "short-term" and "long-term" suggestions that would consolidate federal financial regulators into three primary agencies: the Federal Reserve Board, which under the plan would also act as a market stability regulator; the Office of the Comptroller of Currency, which would oversee savings, loans, and insurance companies (operating under a new federal charter to replace the state chartered system); and the Securities and Exchange Commission and Commodities Future Trading Commission would merge. Lawmakers and lobbyists are expected to resist the plan. Bloggers are not happy about the plan either. Here are some interesting posts concerning the proposal.
Truth On the Market says of the plan:
Empty Wheel says: In spite of the fact that the summary offers no help to those losing their homes, it attempts to pretend this document is at once a response to this crisis, but also a document that has been crafted over time. So, for example, the summary foregrounds its genesis in the time before the crisis, a year ago. ... What the Administration is saying with the creation of this third category is, "We want to rationalize the financial regulatory system. But we want to retain an exception to such regulation for the wilder and more complex financial products. So rather than admit that such a system is no longer sustainable, we will institutionalize a general 're-set' button for the entire financial system." The Agonist says: Worse than all this, I see that the plan actually suggests effectively reducing oversight of the creation of new security products, which given that exotic instruments are what got us into this problem in the first place, is insane.Seeking Alpha says: So Fannie and Freddie (FRE) are getting clobbered and in need of capital infusions, but Paulson comes out with a program that all but guarantees more losses.The Big Picture asks: Riddle me this, Batman: If these finance wizards were any good at the job of self-regulation, would we even be having discussions as to how to resolve a global credit crisis? Interest Rate Roundup says: So at best, this plan could just lead to a bunch of lenders kicking the can down the road. And at worst, if home values keep falling, it could end up being a bad deal for borrowers. They'll end up making more monthly payments on loans against homes that are declining in value. Then when they go to sell one or two years down the road, they'll find themselves upside down to an even greater degree. - Maria Woehr See Google Finance Discussion Group
Categories Deal Video
    Community
 Elsewhere on The Deal.comDealwatchThe Deal MagazineCorporate Dealmaker
The Deal VideoCategories
Blog roll
Archives
| |||||||||||||||||||||||
|
|
|
|
|
©Copyright 2009, The Deal, LLC. All rights reserved. Please send all technical questions, comments or concerns to the Webmaster.
