Without better regulation, it's all just an expensive game. (photo: tamaki via Flickr)
President Obama recently called for specific changes to regulation of the finance business. One of these proposals is an especially good idea.
The President also announced a new proposal to limit the consolidation of our financial sector. The President's proposal will place broader limits on the excessive growth of the market share of liabilities at the largest financial firms, to supplement existing caps on the market share of deposits.
There doesn't seem to be a written proposal. The New York Times reported the following:
The administration wants to expand that cap to include all liabilities, to limit the concentration of too much risk in any single bank. Officials said the measure would prevent banks at or near the threshold from making acquisitions but would not require them to shrink their business or stop growing on their own.
The Obama administration said the new proposals were in the "spirit of Glass-Steagall" — a reference to the Depression-era law that separated commercial and investment banking, which was repealed in 1999.
rest at http://firedoglake.com/2010/02/28/president-obama%E2%80%99s-good-idea-for-regulating-swaps/
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