Treasury Chief to Declare Big Gains in Financial Reform
Published: Thursday, 5 Dec 2013
By: Peter Eavis
Treasury Secretary Jacob J. Lew will assert on Thursday that the Obamaadministration's vast overhaul of the financial system is close to accomplishing its goal of shielding society from the dangers posed by giant banks.
In a broad policy speech intended to signal the administration's views on financial regulations, Mr. Lew will also make it clear that more measures may be needed to strengthen the global system. In comments that will most likely upset foreign governments, he will call on overseas regulators to make their rules tougher.
"We will press other jurisdictions to match our robust standards — including in Europe and across Asia," Mr. Lew will say, according to a draft of the speech, which he is scheduled to give at the Pew Charitable Trusts office in Washington.
More than three years after the overhaul began, Mr. Lew says that the largest banks are safer today, making it much less likely that taxpayers would have to bail them out in a future crisis.
In a broad policy speech intended to signal the administration's views on financial regulations, Mr. Lew will also make it clear that more measures may be needed to strengthen the global system. In comments that will most likely upset foreign governments, he will call on overseas regulators to make their rules tougher.
"We will press other jurisdictions to match our robust standards — including in Europe and across Asia," Mr. Lew will say, according to a draft of the speech, which he is scheduled to give at the Pew Charitable Trusts office in Washington.
More than three years after the overhaul began, Mr. Lew says that the largest banks are safer today, making it much less likely that taxpayers would have to bail them out in a future crisis.
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"Earlier this year, I said if we could not with a straight face say we ended 'too big to fail,' we would have to look at other options," he says. "Based on the totality of reforms we are putting in place, I believe we will meet that test, but to be clear, there is no precise point at which you can prove with certainty that we have done enough."
Mr. Lew's comments come as regulators are scheduled to meet next week to finally approve the Volcker Rule, a cornerstone of the overhaul that tries to stop banks from speculatively trading with depositors' money and other funds. In recent months, the Treasury Department has pressed the five agencies that worked on the rule to finish it before the end of the year.
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The Treasury secretary's comments are likely to add more fuel to the debate over the adequacy of the rules that stem from the Dodd-Frank Act, which Congress passed in 2010.
Critics of the legislation say it does not solve the too-big-to-fail problem, because, they say, it does not directly limit or reduce the size of the nation's largest lenders. To make up for this perceived shortcoming, some Republican and Democratic senators this year introduced two pieces of legislation that they said would be much more likely to constrain the biggest banks.
Against this background, Mr. Lew's speech gives firm backing to the policies that stem from Dodd-Frank, but it also says officials have to remain vigilant to make sure that the rules work effectively. Additional actions may also be necessary, he says. "If, in the future, we need to take further action, we will not hesitate," he says in the draft of the speech.
Mr. Lew is pushing for new measures to reduce the risks posed by money-market mutual funds. In addition, he argues that vulnerabilities still exist in the short-term debt markets that Wall Street firms tap heavily. TheFederal Reserve is expected to propose new measures soon to make these short-term markets more stable. The speech also calls on Congress to provide all regulatory agencies with enough money to enforce the new rules.
Much of the speech, however, was devoted to the progress of financial regulations overseas. Next year, the Treasury expects to focus on working with foreign regulators to devise plans for winding down a large global bank in an orderly way if it gets into trouble.
"The failure to work out such arrangements now could pose a significant future risk to our financial system," Mr. Lew's speech will say.
The Treasury Department also remains concerned about regulatory loopholes in overseas derivatives markets.
Federal regulators, seeking to rein in risky derivatives trading at big banks overseas, have landed in a turf battle with foreign finance ministers who are vying to limit the reach of American authorities. A deal was struck in July for a joint approach to cross-border trades. But on Wednesday, in a move that underscored the continuing challenge of carrying out Dodd-Frank, Wall Street trade groups filed a lawsuit that challenged cross-border guidelines that American regulators had put in place. Mr. Lew's comments also suggested that the Treasury believes that foreign governments may use trade negotiations as a way to weaken financial regulations. "We will not allow these agreements to serve as an opportunity to water down domestic financial regulatory standards," he says.
In reality, much still needs to be done in the United States. Although theVolcker Rule may be soon be finished, several complex and far-reaching requirements that arose from Dodd-Frank still have not been completed. These include crucial rules on derivatives and mortgage lending.
Mr. Lew said very little about efforts to overhaul housing finance in the United States. The taxpayer still backstops nearly every new mortgage, and the Obama administration has taken few steps to move home loans back into the private sector.
"Significant housing finance reform is still needed to add clarity to the market and attract more private capital," Mr. Lew says.
—By Peter Eavis of The New York Times
http://www.cnbc.com/id/
Mr. Lew's comments come as regulators are scheduled to meet next week to finally approve the Volcker Rule, a cornerstone of the overhaul that tries to stop banks from speculatively trading with depositors' money and other funds. In recent months, the Treasury Department has pressed the five agencies that worked on the rule to finish it before the end of the year.
Pressure Builds to Finish Volcker Rule on Wall St. Oversight
Corporations Prepared to Pay a Price for Carbon Waste
InternetCompanies Stepping Up Efforts to Stop Spying
The Treasury secretary's comments are likely to add more fuel to the debate over the adequacy of the rules that stem from the Dodd-Frank Act, which Congress passed in 2010.
Critics of the legislation say it does not solve the too-big-to-fail problem, because, they say, it does not directly limit or reduce the size of the nation's largest lenders. To make up for this perceived shortcoming, some Republican and Democratic senators this year introduced two pieces of legislation that they said would be much more likely to constrain the biggest banks.
Against this background, Mr. Lew's speech gives firm backing to the policies that stem from Dodd-Frank, but it also says officials have to remain vigilant to make sure that the rules work effectively. Additional actions may also be necessary, he says. "If, in the future, we need to take further action, we will not hesitate," he says in the draft of the speech.
Mr. Lew is pushing for new measures to reduce the risks posed by money-market mutual funds. In addition, he argues that vulnerabilities still exist in the short-term debt markets that Wall Street firms tap heavily. TheFederal Reserve is expected to propose new measures soon to make these short-term markets more stable. The speech also calls on Congress to provide all regulatory agencies with enough money to enforce the new rules.
Much of the speech, however, was devoted to the progress of financial regulations overseas. Next year, the Treasury expects to focus on working with foreign regulators to devise plans for winding down a large global bank in an orderly way if it gets into trouble.
"The failure to work out such arrangements now could pose a significant future risk to our financial system," Mr. Lew's speech will say.
The Treasury Department also remains concerned about regulatory loopholes in overseas derivatives markets.
Federal regulators, seeking to rein in risky derivatives trading at big banks overseas, have landed in a turf battle with foreign finance ministers who are vying to limit the reach of American authorities. A deal was struck in July for a joint approach to cross-border trades. But on Wednesday, in a move that underscored the continuing challenge of carrying out Dodd-Frank, Wall Street trade groups filed a lawsuit that challenged cross-border guidelines that American regulators had put in place. Mr. Lew's comments also suggested that the Treasury believes that foreign governments may use trade negotiations as a way to weaken financial regulations. "We will not allow these agreements to serve as an opportunity to water down domestic financial regulatory standards," he says.
In reality, much still needs to be done in the United States. Although theVolcker Rule may be soon be finished, several complex and far-reaching requirements that arose from Dodd-Frank still have not been completed. These include crucial rules on derivatives and mortgage lending.
Mr. Lew said very little about efforts to overhaul housing finance in the United States. The taxpayer still backstops nearly every new mortgage, and the Obama administration has taken few steps to move home loans back into the private sector.
"Significant housing finance reform is still needed to add clarity to the market and attract more private capital," Mr. Lew says.
—By Peter Eavis of The New York Times
http://www.cnbc.com/id/
5 comments:
Jack Lew- Obviously Jesuit trained at Georgetown University
Will We The People continue to play THEIR game of Monopoly with them? I tell you-BANKERS win!
When are we the free people going to print our own money? That would be significant. Until then Jesuit - Federal Reserve - Treasury is doing damage control and making propaganda and nothing really changes. They are the primary problem inherent to the US and global economy. To the bank$ter$; we trust you not and you will never have our confidence.
JACKIE BOY HAS TO BE SMOKING THE WACKEY TOBACKEY....WHAT A FRICKEN IDIOT TO MAKE THE COMMENTS HE MADE....HE IS ATOTAL ROTHSCHILD ASSHOLE.... PEOPLE WHEN ARE WE GOING TO TAKE THESE BASTARDS OUT OF OUR LIVES????
http://www.ascensionwithearth.com/2013/12/global-currency-reset-update-by-pastor.html
Lindsey Williams on GoldSeek Radio speaking with Chris Waltzek on 4th December 2013 talking about a global currency reset that if the Elite have their way will take place within 90 days. He confirms this is not the collapse or a devaluation of the American dollar, but it will cause the dollar to lose its world reserve status. This will be the biggest financial event in the last 1,000 years from the prespective of Pastor Williams’ Elite friends. Every person on the globe will be affected. 204 nations have agreed with the IMF (International Monetary Fund) to revalue their currencies to within 3 to 5% of each other based upon the assets of each country. This will end the currency wars and give the New World Order full control with a new gold backed currency. it will mean the US dollar will be reset down by 30% of its current value. He says that bank holidays are still another year off and that 30-50% of private, state and federal retirement funds are to be nationalised and/or confiscated between now and then.
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