Financial Market Overhaul

[sarahsays]

"Paulson to propose financial market overhaul"

So what do you all think? Good news or bad news?
Seeing how the Fed and other entities are already regulating the market doesn't give me much confidence...

[W2R]

Quote:

Originally Posted by sarahsays "Paulson to propose financial market overhaul" So what do you all think? Good news or bad news? Seeing how the Fed and other entities are already regulating the market doesn't give me much confidence...

It should be interesting to hear the details in his speech.

Sometimes modernizing and updating can't be put off any more. The following quote from the article makes me think that at least certain changes would be very helpful.

Quote:

Initial response from the financial industry was positive. Tim Ryan, president and CEO of the Securities Industry and Financial Markets Association called Paulson's proposals "a thoughtful and sweeping plan." "Our present regulatory framework was born of Depression-era events and is not well suited for today's environment where billions of dollars race across the globe with the click of a mouse," he said. "That fact, teamed with the current market conditions, result in an universal agreement that it is time to modernize and revitalize the current system."

On the other hand, do the changes he will propose allocate too much power to the Federal Reserve, which isn't even a federal agency? Kind of scary.

[brewer12345]

The treasury released its proposal in a 200+ document, in case you are having trouble sleeping.

My best guess is that the vast majority of this goes nowhere. It all requires the cooperation of Congress in an election year and it ignites a frenzy among a large number of special interest groups who have every incentive to pull out all the stops to get this written their way. I expect a big, nasty fight with lots of grandstanding and finger pointing, followed by inactivity and recriminations.

[Notmuchlonger]

Quote:

Originally Posted by brewer12345 The treasury released its proposal in a 200+ document, in case you are having trouble sleeping. My best guess is that the vast majority of this goes nowhere. It all requires the cooperation of Congress in an election year and it ignites a frenzy among a large number of special interest groups who have every incentive to pull out all the stops to get this written their way. I expect a big, nasty fight with lots of grandstanding and finger pointing, followed by inactivity and recriminations.

Business as usual eh

[brewer12345]

Quote:

Originally Posted by Notmuchlonger Business as usual eh

Hey, they are politicians. They have about as much control over their actions as a junkie does when he gets locked in the hospital pharmacy overnight.

[sarahsays]

Here's a summary of what Paulson actually said.

All of the proposed consolidation is likely to make things stall (and possibly allow others to fall through the cracks).

I agree brewer, there's still a lot more that has to happen!

[ronin]

Various agencies that will get merged and don't want to give up power are already squawking.

[cocobird]

This is just another in a series of proposals to restructure, consolidate, or otherwise change the financial regulatory system. When I went to work for a federal banking agency (1979), they were talking about changes back then such as consolidation. The upheaval with the thrift and bank failures didn't result in changes except to get rid of FSLIC (the deposit insurance fund for savings and loans). It's nearly thirty years later since I started working and still no significant consolidation. Maybe this time there will be some minor changes.

[Caroline]

Quote:

Initial response from the financial industry was positive.

This right here is enough to make me worry. When they say "response from consumer watchdogs was positive" I may change my mind.