House Financial Services Committee Chairman Rep. Barney Frank, D-Mass., hopes to have a plan for federal oversight of the nation’s financial system by May. The goal is to create a systemic risk regulator to monitor “systemically significant” companies in an effort to make financial meltdowns less likely, according to the Associated Press.
Frank said at a hearing today that a plan is still in its initial stage. But the idea has left many wondering whether the Fed ought to oversee a consolidated regulatory system.
According to the Associated Press, White House spokesman Robert Gibbs said President Barack Obama wants both financial regulation reform and a new “resolution authority” to deal with giants such as American International Group Inc. that get into complex financial trouble. He said the authority would be used “to break apart, unwind and finally resolve the issues that we face with systemic risk.”