Lawmakers question whether Federal Reserve is best suited to be super financial regulator

September 30th, 2009 Zoellick advocates greater role for US TreasuryWASHINGTON — The president of the World Bank says he opposes giving more authority to the U.S. Federal Reserve, arguing instead that the Treasury Department is better suited to manage financial crises.

September 30th, 2009 Bernanke asks Congress to empower regulatorsWASHINGTON — Federal Reserve Chairman Ben Bernanke says federal regulators should be responsible for ensuring that the financial institutions they oversee don't become so big and unwieldy that their failure could bring down the economy. In testimony prepared for a House hearing on Thursday, obtained in advance by The Associated Press, Bernanke said Congress should establish a council of regulators to monitor large, influential firms like insurance giant AIG.

September 21st, 2009 Senate bill could weaken the FedWASHINGTON — Consensus is building in the Senate for legislation that would significantly weaken the Federal Reserve by stripping its power to oversee banks and hand that job to a single federal bank regulator. The proposal by Senate Banking Committee Chairman Christopher Dodd to merge federal prudential oversight into a single regulator differs from a plan by President Barack Obama.

July 24th, 2009 Geithner defends financial oversight reformWASHINGTON — Treasury Secretary Timothy Geithner said Friday that a new agency focused on protecting consumers is needed because the mission currently is too scattered among various regulators. This results in "finger-pointing in place of action," he told the House Financial Services Committee.

July 9th, 2009 Fed official questioned on systemic regulator roleWASHINGTON — With many lawmakers wary of giving the Federal Reserve more power under a proposed financial overhaul, the Fed's No. 2 official on Thursday defended the central bank's ability to take on more oversight responsibilities.

June 18th, 2009 Geithner: Fed best suited for super regulator roleWASHINGTON — Treasury Secretary Timothy Geithner says the Federal Reserve is best suited to become a super-regulator that would oversee financial firms so big and influential that their failure could topple the economy. Some lawmakers want to give the job to a council of regulators.

June 18th, 2009 Geithner defends plan to step up oversightWASHINGTON — Treasury Secretary Timothy Geithner says it is clear that the government could have done more to prevent the economic downfall. In prepared testimony, Geithner says that gaps and weaknesses in the regulatory framework governing banks and other financial institutions "presented challenges" to the government's ability to monitor and address risky market bets.

June 18th, 2009 Dollar advances on upbeat economic reportsNEW YORK — The dollar rose slightly against major currencies Thursday as several upbeat reports on the economy encouraged investors, while President Barack Obama's plan to transform the Federal Reserve into a super-regulator ran into skepticism. A private sector group said its forecast of economic activity rose more than expected in May, marking a second straight gain after seven months of declines.

June 16th, 2009 Obama wants new financial agency for consumersWASHINGTON — Setting up a certain fight with big business, President Barack Obama is about to recommend creation of a regulatory agency to protect consumers in their credit, savings and other banking transactions. The new agency and a newly empowered Federal Reserve will be two of the central elements of a broad overhaul of the financial regulatory system that the president will announce on Wednesday, officials said.

June 16th, 2009 Lawmakers split on insurance oversight reformWASHINGTON — House lawmakers are divided about how to supervise the insurance industry as Congress awaits the Obama administration's blueprint for a broad overhaul of the nation's financial rule book. Rep. Paul Kanjorski, D-Pa., chairman of a House Financial Services subcommittee, said Tuesday he was "confident" the administration's broader proposal would include a new federal office of insurance information to collect data on the industry and advise the new systemic risk regulator on possible threats.

June 6th, 2009 Treasury, key lawmaker differ on risk overseerWASHINGTON — The Obama administration and House Financial Services Committee Chairman Barney Frank are at odds over how the government can best spot potential institutional meltdowns that could spread and put the nation's financial system at risk. The differences between Treasury Secretary Timothy Geithner and Frank, a key and influential congressional voice on banking, come as the administration prepares to send Congress a package of proposed regulatory changes designed to avert the crisis that struck the financial sector last year.

May 9th, 2009 AP Sources: White House likes making Fed supercopWASHINGTON — The White House is telling industry officials it is leaning toward wanting the Federal Reserve to become the supercop for "too big to fail" companies capable of causing another financial meltdown. Officials who attended a private one-hour meeting Friday said the administration made it clear it was not inclined to divide the job among various regulatory agencies, as suggested by industry and some federal regulators.

May 8th, 2009 SEC chief backs 'systemic risk council' ideaWASHINGTON — The head of the Securities and Exchange Commission favors a new proposal for federal regulators sharing oversight of companies that pose financial risks to the economy. SEC Chairman Mary Schapiro said she's "inclined toward" the idea floated this week by the head of the Federal Deposit Insurance Corp.

April 23rd, 2009 Plan to regulate financial market slows on HillWASHINGTON — A key piece of President Barack Obama's plan to prevent another economic meltdown already has slowed in Congress, and Democrats acknowledged Thursday that the task of approving the proposal may be tougher than initially thought. Rep. Barney Frank, D-Mass., and chairman of the House Financial Services Committee, has delayed plans to take up during the first week of May a bill that would enable the government to wind down failing financial institutions like insurance giant American International Group.

March 26th, 2009 WASHINGTON - US President Barack Obama's administration, in a massive overhaul of the country's financial regulatory system, is seeking the power to keep watch on all types of financial firms and to seize failing companies integral to the health of the system. US Treasury Secretary Timothy Geithner unveiled the plans in congressional testimony on Thursday, arguing that the current financial turmoil has proven the system is 'too unstable and fragile' to be allowed to manage itself.