The Obama administration is reportedly considering the creation of a regulatory body to oversee the banking industry. If this proposal is carried through, the new agency would replace several agencies that currently oversee different aspects of the financial markets.
Key Details
The main features of this proposal are as follows:
* The creation of a new agency to oversee banks, which would assume the responsibilities that are currently divided among the Federal Reserve, the Office of the Comptroller of the Currency, the Office of Thrift Supervision (which was responsible for the supervision of the American International Group and Washington Mutual among others) and the Federal Deposit Insurance Corp. Under the current system, banks can choose their regulator among this group.
* A merger between the Securities and Exchange Commission and the Commodity Futures Trading Commission has been discussed.
* A new agency may be created to protect consumers of financial products such as credit cards and mortgages.
Lawmakers are hopeful that such a plan would be approved by the end of the year, and a final plan is expected to be delivered to Congress in the near future.
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