Posts

Showing posts from November 16, 2009

Tough going for bid to pare Fed

Business Times - 17 Nov 2009


Tough going for bid to pare Fed

By LEON HADAR
WASHINGTON CORRESPONDENT

US LAWMAKERS have been drawing plans on how to reform financial regulations and prevent another deadly meltdown, more than a year after the economic crisis started.

At the centre of the debate on Capitol Hill has been the role that the US central bank should (or shouldn't) play in regulating financial institutions.

Federal Reserve chairman Ben Bernanke, who is backed by President Barack Obama and his top economic aides, wants the Fed to take upon itself the responsibility of a top regulator. Both Republican and Democratic critics argue that the Fed has not had a very strong record as a regulator and want to deny the Fed any new regulatory powers.

Hence, while legislation offered by Democratic Representative Barney Frank of Massachussetts, the chairman of the House of Representatives' Financial Services Committee, posits a powerful bank regulatory role for the Fed, a bill proposed b…