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

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.