Even before the current economic crisis many folks have called for revamped regulations in the financial markets, including the securities markets. Now, as folks trot out the "R" word (recession) and some even mentioning the "D" word (depression), I'm confident that there will be some changes to the ways the markets are regulated, and likely some shuffling at the federal level of who does what. Alas, my crystal ball is no better than yours, so I won't opine about what I think will happen in today's post.
However, Jim Hamilton, a principal analyst with Wolters Kluwer Law & Business published a post over the weekend titled "President-Elect Obama details key principles to guide federal financial regulation reform" at the aptly-named Jim Hamilton's World of Securities Regulation. In his post, Mr. Hamilton discusses six main points in the President-Elect's platform:
1. 21st century regulation - not a regulatory framework for the 1930s.
2. Ensure that the Federal Reserve has appropriate authority.
3. Enhance capital requirements and focus on risk management and liquidity.
4. Regulate financial institutions based on what they do, not what type of entity they are.
5. The SEC should aggressively investigate market manipulations and take appropriate actions.
6. Establish methods to identify threats to the financial system, and act on them.
Its worth a quick read through Mr. Hamilton's full post to get the full sense of policies under consideration by the soon to be in place administration. If you were to add to this list of six, what would you add? (comments subject to blog's comments policy, of course).
Comments