Modernizing the U.S. financial regulatory system: hearing before the Committee on Banking, Housing, and Urban Affairs, United States Senate, One Hundred Eleventh Congress, first session ... February 4, 2009.

Modernizing the U.S. financial regulatory system: hearing before the Committee on Banking, Housing, and Urban Affairs, United States Senate, One Hundred Eleventh Congress, first session ... February 4, 2009.

This testimony discusses a Jan. 8, 2009, report that provides a framework for modernizing the outdated U.S. financial regulatory system. This testimony: (1) describes how regulation has evolved in banking, securities, thrifts, credit unions, futures, insurance, secondary mortgage markets and other important areas; (2) describes several key changes in financial markets and products in recent decades that have highlighted significant limitations and gaps in the existing regulatory system; and (3) presents an evaluation framework that can be used by Congress and others to shape potential regulatory reform efforts. Charts and tables.

The U.S. and other countries are in the midst of the worst financial crisis in more than 75 years. While much of the attention of policymakers has been focused on taking short-term steps to address the immediate nature of the crisis, these events have served to strikingly demonstrate that the current U.S. financial regulatory system is in need of significant reform. This report: (1) describes the origins of the current financial regulatory system; (2) describes various market developments and changes that have created challenges for the current system; and (3) presents an evaluation framework that can be used to shape potential regulatory reform efforts. An important and thorough review of the issues related to regulatory reform. Charts and tables.

The current U.S. financial regulatory system has relied on a fragmented and complex arrangement of federal and state regulators, put into place over the past 150 years, that has not kept pace with major developments in financial markets and products in recent decades. As the nation finds itself in the midst of one of the worst financial crises ever, the regulatory system increasingly appears to be ill-suited to meet the nation's needs in the 21st century. This book explores a framework for modernising the outdated U.S. financial regulatory system to help policymakers weigh various regulatory reform proposals and consider ways in which the current regulatory system could be made more effective and efficient.