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Article: Reform Spotlight Takes Systemic Shift; New proposal gives the Fed power over fellow regulators, allows central bank to force undercapitalized companies into bankruptcy.(Regulation)(Federal Reserve Board)(Department of the Treasury)
- Article from:
- Investment Dealers' Digest
- Article date:
- October 30, 2009
- Author:
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Byline: Steven Sloan and Cheyenne Hopkins
For all the invective directed at the Federal Reserve Board over the financial crisis, the central bank still emerged as the big winner under draft legislation to rein in systemic risk.
The proposal, crafted by the Treasury Department and House Financial Services Committee chairman Barney Frank, would give the Fed power to overrule fellow regulators, force undercapitalized companies into involuntary bankruptcy and even to break up firms. The central bank also would gain a seat on the Federal Deposit Insurance Corp., the power to regulate thrift holding companies and the jurisdiction to write and enforce new rules ...