New Financial Regulation Passes, Gives Fed More Power

July 16, 2010

WALL STREET JOURNAL | By LUCA DI LEO

After fending off most challenges to its independence and winning new powers to oversee big financial firms, the Federal Reserve has emerged from a bruising debate on the overhaul of U.S. financial rules as perhaps the pre-eminent regulator in the sector. But that could only bring it added blame if things go wrong again.

With financial reform clearing Congress, the Fed has emerged as perhaps the pre-eminent financial regulator, but that could only bring it added blame if things go wrong again. Jon Hilsenrath, Evan Newmark and Kelly Evans discuss. Also, Jennifer Valentino-DeVries discusses Apple’s options ahead of its anticipated press conference on the troubled iPhone-4.

Just a few months ago, amid populist anger at the Fed for failing to prevent the financial crisis of 2008 and bailing out Wall Street, Congress was talking of stripping the central bank of its supervisory oversight of banks or forcing it to submit to congressional audit of its interest-rate decisions.

Instead, the new law gives the Fed more power and a better tool box to help prevent financial crises. It will become the primary regulator for large, complex financial firms of all kinds, such as American International Group, the insurer which built a massive derivatives portfolio that regulators didn’t see until it was too late.

READ MORE…

Please help us spread the word about FollowtheMoney.com on Facebook, Twitter,
and any other social media outlets.

Silver & Gold

Call 800-247-2812 now for the best prices on gold and silver coins and receive Free Shipping and Insurance when you mention Follow the Money.

Weekly Newsletter

Stay in the loop!
Sign up today to receive our
weekly e-newsletter.