Piece From The WaPo: U.S. Weighs Single Agency to Regulate Banking Industry
Senior administration officials are considering the creation of a single agency to regulate the banking industry …
They favor vesting the Federal Reserve with new powers as a systemic risk regulator, with broad responsibility for detecting threats to the financial system. The powers would include oversight of previously unregulated markets, such as the derivatives trade, and of market participants such as hedge funds.
Officials also favor the creation of a new agency to enforce laws protecting consumers of financial products such as mortgages and credit cards.
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Among these ideas is the creation of a single agency to regulate banks. The new regulator would assume responsibility for the safety and soundness of banks, currently divided among the Fed and three other agencies: the Office of the Comptroller of the Currency, the Office of Thrift Supervision and the Federal Deposit Insurance Corp. The OCC and the OTS would probably disappear, while the Fed and the FDIC would retain other responsibilities.
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Officials also are considering giving the FDIC the power to seize large financial firms, such as the parent companies of banks, to prevent their collapse.
