US must `reform outdated financial sector'
Friday 12 February 1999
The Chairman of the Federal Reserve was pitching in to a tough argument over how the US should remove decades-old barriers that prevent banks, insurance companies and stockbrokers from combining. Though the goal is shared by the industry, Congress and the US administration, there are stark differences over how the new structures should be set up and regulated.
"The markets are demanding that we change outdated statutes," said Mr Greenspan in testimony to the Congress yesterday. Financial markets are at a "crossroads" where technology is outpacing the ability of regulators, he said. "Unless soon repealed, the archaic statutory barriers to efficiency could undermine the global dominance of American finance as well as the continued competitiveness of our financial institutions."
Limitations on financial sector mergers go back to the Depression-era Glass Steagall act. The US has been debating change to this and other measures since the early 1980s, while virtually every other country has moved towards a model where financial services can be combined under one roof.
The Federal Reserve supports a bill called HR10 after its legislative reference, but this approach is opposed by the US Treasury. Robert Rubin, US Treasury Secretary, said he was against the idea in testimony on Wednesday, and he backed an alternative bill. The crux of the issue for the Treasury is who would regulate the new financial supermarkets. The Treasury wants to maintain control, but HR10 would give the Federal Reserve greater weight.
- 1 Malaysian cyclist could face disciplinary action after 'Save Gaza' gloves protest
- 2 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 3 McDonald’s removes chicken nuggets from the menu in Hong Kong amid major food scare
- 4 Students offered grants if they tweet pro-Israeli propaganda
- 5 Satellite full of sexually experimental geckos adrift in space, Russia loses control of mission
Israel-Gaza conflict: Israeli targeting policy under scrutiny after shellfire hits a mother and child, a school full of refugees and a doctor’s home
Iraq crisis: Isis orders Mosul shop keepers to cover mannequins
Comic Con 2014 attendees
Students offered grants if they tweet pro-Israeli propaganda
McDonald’s removes chicken nuggets from the menu in Hong Kong amid major food scare
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£600 - £650 per day: Orgtel: Conduct Risk Liaison Manager - Banking - London -...
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
£280 - £300 per day + competitive: Orgtel: Test Analyst, Edinburgh, Credit Ris...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...