David Marchick, the managing director of global government and regulatory affairs at the Carlyle Group, was part of a Wednesday morning panel at The Deal's M&A Outlook 2009 conference, which discussed the ways that the regulatory structure may evolve under a Barack Obama administration and heavily Democratic Congress.
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"Economic rescue will be the first priority of the Obama administration," he said. "They won't focus on fixing the
system first; they'll focus on stopping the bleeding. After that I
think there will be a significant push to modernize the regulatory
system, like putting into law the broadened types of firms that have
access to the Fed's discount window."
Marchick sees the new administration focusing on a number of issues such as:
- Broader oversight of currently unregulated sectors of the financial system
- Minimizing systemic risk
- Regulating derivatives
"All this will be done in an international setting to avoid regulatory arbitrage," Marchick said.
"I'm fairly optimistic that we won't see a punitive approach to new regulation because the campaign is over," he continued.
"Hopefully Congress will take the appropriate time and use a methodical process to the process [of drafting new regulations]. We could be looking at 10 to 15 years of regulation getting passed in only a few months time." -
George WhiteSee all M&A Outlook 2009 posts
