Systemic regulator seen as inevitable

A systemic regulator for the country’s economy and financial system is likely to be put in place by the Obama administration.
MAR 13, 2009
By  Bloomberg
A systemic regulator for the country’s economy and financial system is likely to be put in place by the Obama administration, a senior lobbyist for the American Bankers Association told the organization’s annual Wealth Management and Trust Conference on Thursday in San Francisco. “Everyone agrees that there needs to be a systemic regulator, someone who can look at the landscape and consider the impact [of rules and regulations] on the overall financial environment,” said Floyd Stoner, executive vice president, congressional relations and public policy, for the ABA of Washington. Many of the problems that led to the financial crisis can be traced to “gaps in the regulatory process,” he said. “We need to figure out a way so that those gaps can’t be exploited.” Exactly who the regulator should be remains undecided, Mr. Stoner said. A number of proposals have called for the Federal Reserve Board to become a systemic risk regulator for the financial services industry, he said. Nonetheless, the structure of the regulatory body “is still up for debate,” Mr. Stoner said. He also told the ABA conference attendees that he does not expect the Obama administration to nationalize troubled banks. “That is not where they think this is going,” he said. “Nationalization is clearly not the right answer.”

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave