President Obama named modernizing the financial services regulatory structure a top priority Wednesday but offered few details other than a list of ideals including preventing systemic risk and a hint that the Federal Reserve Board might get that role.
"There are certain core principles that I believe must shape any proposal for reform and these are the principles that will guide our work," the president said after a White
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The taxpayer should be assured that the Fed thoroughly understands the institutions that it is insuring and actively monitoring them to make sure they are not taking risks that will cost taxpayers in the long run."
The president made clear that crafting legislation is just beginning and that he doesn't expect policymakers will "always see eye to eye" in the weeks and months ahead as they work to fill in the details.
The president reiterated many of the basic ideals policymakers have been discussing for months.
He said reform should be comprehensive, cut across financial markets, and reach globally as well. It should not stifle innovation, but it must improve transparency, increase accountability, and create uniform supervision.
House Financial Services Committee Chairman
Senate Banking Committee Chairman
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In an interview after President Obama's address to Congress Tuesday night he said, "The Fed was the bank regulator at all the big holding companies. Obviously it didn't do a very good job."
The Alabama Republican acknowledged Rep. Frank's interest in bolstering the Fed's role but said he believes the Banking Committee has a different view.
"I think Sen. Dodd and I both … we're not sure the Fed's got that great a record on overseeing things," he said.
More discussion on the topic is expected Thursday when Rep.