Posted on 03/10/2009 8:01:10 AM PDT by L,TOWM
WASHINGTON – The nation's financial regulatory system must be overhauled to strengthen oversight of banks, mutual funds and large financial institutions whose collapse would put the entire economy in peril, Federal Reserve Chairman Ben Bernanke said Tuesday.
"We must have a strategy that regulates the financial system as a whole, in a holistic way, not just its individual components," Bernanke said in a speech to the Council on Foreign Relations.
In his most extensive remarks on the subject, Bernanke built upon previous suggestions to bolster mutual funds and a program that insures bank deposits — and repeated his call for Congress to create a system to cushion fallout from the failure of a big financial institution.
The Fed chief's remarks come as the Obama administration and Congress are starting to crafting their overhaul strategies.
(Excerpt) Read more at news.yahoo.com ...
Just print more money, Ben. That’ll fix it.
“...in a speech to the Council on Foreign Relations.” Somehow I figured Bernanke would be a big guy in their fold.
Bone-head Bernanke....
where do they find these clowns...
Repeal the CRA, numbskull — that’d be a start.
Had the CRA not been adopted, the housing market wouldnt have crashed and theyd be no mortgage crisis. Instead coercing the banks and financial institutions to make bad home loans to people who could never afford to keep them or pay them was a disaster waiting to happen. The dumbocrats were responsible for that. And on top of it all they allowed Fannie and Freddie to go financially bankrupt while telling the world they were financially stable. Dumbocrats are not only financially irresponsible, they are financially reckless as well.
Somehow, I don't think that giving more power and oversight to the Federal Reserve is the solution...
Regulatory system must be overhauled to strengthen oversight of banks, mutual funds and large financial institutions decoded our first plan didn’t work nobody was on the job.
Wait, How can you “overhaul” something that was not there and caused the financial meltdown?
The FED is already too proactive and strong. What is really needed is a more proactive SEC!
So did Bush, but the Democrat congress didn´t agree with him.
That’s nonsense...many of the bad loans and other toxic investments are so called prime...what crashed this economy was credit default swaps-unregulated-without sufficient capital to pay in the event of losses and highly leveraged Wall Street banks. No one told Wall Street to leverage themselves 40-1 or in some cases 60-1. I will not go along with such nonsense.
Wall street crashed this economy...the laws that were enacted after the great depression were repealed when the financial sector mounted a many billion dollar campaign to woo congress...I want to know when we will see indictments...it’s the only thing that will give me confidence in the market that wrong doers are punished and that you can not kill your company, screw your stockholders and walk away with millions and millions. How could I consider investing in a market that defends such practices and can not be trusted.
“Had the CRA not been adopted, the housing market wouldnt have crashed and theyd be no mortgage crisis. Instead coercing the banks and financial institutions to make bad home loans to people who could never afford to keep them or pay them was a disaster waiting to happen. The dumbocrats were responsible for that. And on top of it all they allowed Fannie and Freddie to go financially bankrupt while telling the world they were financially stable. Dumbocrats are not only financially irresponsible, they are financially reckless as well.”
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Exactly, and now Congress and bureaucrats like BB tell us that more government regulation is the answer. Congress caused the problem!
The elimination of this long-standing rule allowed opaque and lightly regulated hedge funds to pile on financial and other stocks without any mechanism for relief. Combined with naked shorting, this--as much as the absurd mark-to-market rules--exacerbated the loss of wealth associated with this recession.
I would like to see the meeting minutes that contained the advocacy positions for this rule change and who initiated and supported it. I would like to see the so-called studies that were relied upon (and who commissioned them). I would like to know if the proposed repeal was vetted with business leaders and non-hedge fund money managers.
I would like to see an analysis of the post rule change market dynamics and what conclusions regarding the rule's repeal are supported.
I believe some hedge funds profited outrageously at the expense of most Americans because of the repeal of the uptick rule.
All good points — to reinforce your comments, I’ll point out what happened to Bear Stearns and the subsequent reinstatement of the uptick rule, the financials went back to an orderly decrease. Rule goes back to no uptick required and its Lehman’s turn to get hammered by shorting.
Of course a lot of hedge funds made money ooff of this. And a lot of them lost their a$$e(t)$, too.
Financial Reform to Address Systemic Risk: Speech by Fed Reseve Chairman Bernanke ( Video link)
See link at #16 for text and ....the Foot Notes...supplied by the the Fed Governors....and the video....supplied by CSPAN.
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