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Monday they had to United in the Gallery of the UMP parliamentary daywith Airbus experts and was consistent with international standardsThe last aroma allows to predict the time in 2For us Barroso is not the right candidatePrivate equity funds are endlessly changing financeand Intercarrier big icing on the cake the creditThey needed to challenge the normal proceduresIf one adds the window edges the potential quadHowever for his peers Yves Bénard is a genuine baronIt runs first to a question from perimeterIt is not with impunity to equilibria of Wall Street. While most economists believe the project rather realistic, even modest, the reform of the financial regulation, presented Wednesday by Barack Obama ("Les Echos" of yesterday) faces already involved lobbying barrage fire. There is not a component of the reform that is impervious to criticism. At the centre of the device, the strengthening of control of the Federal Reserve (Fed) on large financial institutions raises reserves open several Democrats elected, while the future Agency for the protection of consumers of financial products (Consumer Financial Protection Agency) is in the interest of the banking community.
"The question of the allocation of the role of systemic regulator the Fed deserves an in-depth debate. "At this point, the Fed does not have a considerable confidence level", recognized the Democratic President of the Senate Banking Committee, Christopher Dodd, in the wake of the Declaration of Barack Obama. Even the President of the financial affairs of the House of Representatives Committee, Barney Frank, who expressed optimism about the outcome of "the core" legislative reform before the end of the year, has not hidden its doubts on the enlargement of the role of the Central Bank. Other elected officials believe that the role of "systemic regulator" should instead accruing to the new Board of supervisors, directly attached to the Treasury.
"Responsibility and credibility."
"The Central Bank has completely missed his mission in the eyes of the American people as a regulator." And today, we would like to give more responsibilities! ", strongly Republican Senator Richard Shelby. In response to these criticisms, the Secretary of the Treasury, Timothy Geithner, believes that "there is no better alternative in terms of responsibility and credibility." For him, the experience shows that countries having chosen to split the functions of central banker and systemic regulator more suffered than others in times of crisis. As of Barack Obama Senior Economic Advisor Lawrence Summers given sometimes as a potential Ben Bernanke's successor at the head of the Bank centrale, he has ardently defended him also the strengthening of the role of the Fed. For him, it is precisely because some institutions, such as AIG, Lehman Brothers or Countrywide Financial..., escaped so far his jurisdiction that the Central Bank was unable to fully accomplish its mission of surveillance so far.
Direct interference
Another aspect of reform at the centre of criticism: the creation of a new consumer protection agency, based on the model of the Food and Drug Administration (FDA), whose powers are facing the open opposition of banking environments. "The banks are really abasourdies the Mission of this agency will be allowed to develop and impose financial products," rebelled Edward l. Yingling, President of the American Bankers Association. It challenges the direct interference of the Agency in the design of mortgage contracts, without hiding his reservations about its funding. As the American Securitization Forum, which brings together several investment banks, he has not hidden its doubts about the positive impact of the whole of the reform on the status of the real estate market.
Even the Fed, supposed to be the winner of the reform is concerned about the transfer of its expertise in "abusive practices" ("predatory lending") the future agency and the reform of its governance project. According to the former Governor of the Fed, Randall Kroszner, a review of the role of the Fed's 12 regional banks could help to significantly reduce its independence.
