- Administration's Financial Services Regulatory Reform Proposal
- June 26, 2009 | Authors: David L. Richardson; Joseph C. Carter
- Law Firm: McGuireWoods LLP - Richmond Office
The Obama Administration today announced its “white paper” proposal to revamp U.S. financial services regulation, the most important regulatory revamp in a decade. Comprehensive reform of financial services regulation is a major Administration priority.
The Administration proposes to:
- promote robust supervision and regulation of financial firms;
- establish comprehensive supervision and regulation of financial markets;
- protect consumers and investors from financial abuse;
- improve tools for managing financial crises;
- raise international regulatory standards and improve international cooperation; and
- create a Financial Services Oversight Council, a Consumer Financial Protection Agency, and an Office of National Insurance.
The House wants to pass legislation in the House before the August congressional recess. The Senate intends to take final action by the end of the year.
Today’s proposal is the most sweeping effort to increase regulation of financial services institutions since the Great Depression. In addition to its impact on banks, financial services regulatory reform will fundamentally change how companies work with lenders and could dramatically affect the availability of capital for business expansion.