US must `reform outdated financial sector'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"The markets are demanding that we change outdated statutes," said Mr Greenspan in testimony to the Congress yesterday.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 "Unless soon repealed, the archaic statutory barriers to efficiency could undermine the global dominance of American finance as well as the continued competitiveness of our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 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 2 Doctors remove 80 teeth from boy's jaw
- 3 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 4 Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
- 5 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
Downfall of Dustin 'Screech' Diamond, the 'Saved By The Bell' star charged with bar stabbing
Syrian teenager Usaid Barho reveals how he escaped from Isis using a suicide vest
Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
Millions of Britons struggling to feed themselves and facing malnourishment
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Immigrants make UK racist, says Ukip councillor Trevor Shonk
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...