House Financial Services Committee Chairman Barney Frank (D-Mass) said Thursday he will propose major changes to a bill, HR 3904, the Financial Stability Improvement Act of 2009, that would establish a systemic regulation system.
Frank said the alterations will include reducing the role of the Federal Reserve, eliminating the Fed's power to overrule other regulators, and banning the risk regulator from keeping secret a list of "too big to fail" financial institutions.
The revised bill will bar assistance to failing institutions to keep them going, Frank warned, saying, "There will be no conservatorship. Receivership only." The committee will debate the bill and consider amendments for the next two weeks, he added.
The committee approved an amendment by Carolyn Maloney (D-NY) to require the Financial Services Oversight Council to consider an entity's leverage and the degree to which it is regulated when deciding whether to say it is "too big to fail." Such a designation would
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