WASHINGTON — Congressman Barney Frank (D-Mass), Chairman of the House Financial Services Committee today proposed sweeping changes to the way the Federal Government regulates the financial services sector.
Speaking in Boston to the Greater Boston Chamber of Commerce Frank, among other things, proposed establishing a Financial Services Risk Regulator that would regulate according to market behavior more than according to form of institution. He would also, according to a prepared statement, "consolidate the duplicative regulatory structure" and reassess capital margin and leverage requirements in the financial services system.
"Congress should seriously consider establishing (or empowering the Federal Reserve to act as) a 'Financial Services Risk Regulator' that has the capacity and power to assess risk across financial markets regardless of corporate form and to intervene when appropriate," Frank told the meeting.
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"In exchange for potential access to the discount window for non-depository institutions, this regulator could have enhanced tools to receive timely market information from market players, inspect institutions, report to Congress on the health of the entire financial sector and act when necessary to limit risky practices or protect the integrity of the financial system," he added.
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