May 27, 2008
Fed and SEC Work Out Oversight Relationship over Big Banks
What will be the future of financial regulation? Treasury Secretary Paulson's Blueprint would make the Treasury Dept. the uber-financial regulator (with a diminished role for the SEC), while SEC Chairman Cox, in recent weeks, has advocated for that agency's increased supervisory role over the major investment banks that it currently oversees through its Consolidated Supervised Entities (CSE) system. The Washington Post explores how the Federal Reserve and the SEC are working out their joint involvement in the aftermath of the Fed's rescue of Bear Stearns. A special unit, created in the New York Fed that reports directly to its President Timothy Geithner, is composed of staff members from both the bank supervision and markets groups and has been accompanying the SEC on its visits to the big investment banks. Meanwhile the SEC is preparing a Memorandum of Understanding to formalize their information-sharing and cooperative efforts. WPost, Fed Keeps Watch on Wall St. -- From the Inside.
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