AP sources: Obama wants Fed to be finance supercop
Anne Flaherty, Associated Press Writer – Sat May 9
WASHINGTON – The Federal Reserve could become the supercop for “too big to fail” companies capable of causing another financial meltdown under a proposal being seriously considered by the White House.The Obama administration told industry officials on Friday that it was leaning toward making such a recommendation, according to officials who attended a private one-hour meeting between President Barack Obama’s economic advisers and representatives from about a dozen banks, hedge funds and other financial groups.
Treasury Secretary Timothy Geithner and other officials made it clear they were not inclined to divide the job among various regulators as has been suggested by industry and some federal regulators. Geithner told the group that one organization needs to be held responsible for monitoring systemwide risk.
“Committees don’t make decisions,” said Geithner, according to one participant.
A Treasury Department statement provided to The Associated Press on Friday confirmed Geithner’s position that he wants a “single independent regulator with responsibility for systemically important firms and critical payment and settlement systems.”
read article here… AP sources: Obama wants Fed to be finance supercop.
Might be part of the changes Volcker spoke about being needed?… Obama Economic Advisor Volcker: “Federal Reserve Act is Going to Be Reviewed” … joe
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