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2020 | OriginalPaper | Chapter

5. The Regulators

Author : Felix I. Lessambo

Published in: The U.S. Banking System

Publisher: Springer International Publishing

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Abstract

The eight major US federal financial regulators can be categorized into those focused on prudential banking regulation promoting safety and soundness, including the Federal Reserve, FDIC, OCC, and NCUA; those focused on financial markets, including the SEC and the CFTC; one focused on housing finance, the FHFA; and one focused on consumer financial protection, the CFPB.

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Footnotes
1
U.S. Department of the Treasury (2017): A Financial System that Creates Economic Opportunities—Banks and Credit Unions, p. 24.
 
2
BIS-Basel Committee on Banking Supervision (2014): Assessment of Basel III Regulations—United States of America, p. 9.
 
3
Nouriel Roubini and D. Backus (1998): Lectures in Macroeconomics, Chapter 12: Monetary Policy and Commercial Banking.
 
4
Representative Carter Glass (1858–1946) of Virginia, and Senator Robert Owen of Oklahoma played significant role in the debate surrounding the institution of the Federal Reserve System in the US Congress.
 
5
James C. Baker (2002): The Bank for International Settlements, p. 149.
 
6
Edward V. Murphy (2015): Who Regulates Whom and How? An Overview of U.S. Financial Regulatory Policy for Banking and Securities Markets, Congressional Research Service, p. 23.
 
7
GLBA; P.L. 106-102.
 
8
Federal Reserve Act, Section 10.
 
9
Patricia S. Pollard (2003): A Look Inside Two Central Banks: The ECB and the Federal Reserve, The Fed of St. Louis, p. 15.
 
10
These three advisory groups are: (1) Federal Advisory Council, consisting of one member from each Reserve Bank. Its major concerns involve banking and economic issues, (2) Consumer Advisory Council, consisting of thirty specialists in consumer and financial matters, and (3) Thrift Institutions Advisory Council, consisting of people representing thrift institutions. This Council is concerned with issues affecting those institutions.
 
12
The Federal Reserve Act of 1913 O.M.W. Sprague (February 1914): The Quarterly Journal of Economics 28(2): 213–254. Published by: The MIT Press Stable, http://​www.​jstor.​org/​stable/​1883621.
 
13
The Federal Reserve Act of 1913 O.M.W. Sprague (February 1914): The Quarterly Journal of Economics 28(2): 213–254. Published by: The MIT Press Stable, http://​www.​jstor.​org/​stable/​1883621.
 
19
Joseph Stiglitz (2010): Free Fall: America Free Markets, and the Sinking of the World Economy, p. 142.
 
20
The primary difference between the accounting principles and practices in the Financial Accounting Manual and GAAP is the presentation of all System Open Market Account (SOMA) securities holdings at amortized cost rather than the fair value presentation required by GAAP.
 
22
Joseph Stiglitz (2010): Free Fall: America Free Markets, and the Sinking of the World Economy, p. 52.
 
24
Marc Sumerlin, The Fed’s dual Mandate is not the problem, in WSJ, December 28, 2010.
 
25
Marc Sumerlin, Opcit.
 
26
Otto Hieronymi (2009): Globalization and the Reform of the International Banking and Monetary System, Palgrave Macmillan, p. 26.
 
27
US Department of the Treasury—Office of the Comptroller of Currency: A Short History, p. 1, https://​www.​occ.​treas.​gov/​about/​what-wedo/​history/​OCC%20​history%20​final.​pdf.
 
28
Testimony of Grovetta N. Gardineer (Senior Deputy Comptroller for Bank Supervision Policy and Community Affairs office of the before the Committee on Banking, Housing, and Urban Affairs), United State Senate (May 21, 2019).
 
30
Edward V. Murphy (2015): Who Regulates Whom and How? An Overview of U.S. Financial Regulatory Policy for Banking and Securities Markets, Congressional Research Service, p. 21.
 
31
12 U.S.C. § 1820(b)(3).
 
32
The interagency agreement is entitled, “Coordination of Expanded Supervisory Information Sharing and Special Examinations.” During the time period of the Subcommittee’s investigation, the 2002 version of the interagency agreement, signed by the FDIC, Federal Reserve, OCC, and OTS, was in effect. In July 2010, the federal financial regulators agreed to adopt a stronger version, discussed later in this Report.
 
33
P.L. 91-206, 84 STAT. 49.
 
36
The Council is charged with identifying risks to the financial stability of the United States; promoting market discipline; and responding to emerging risks to the stability of the United States’ financial system. The Council consists of 10 voting members and 5 nonvoting members and brings together the expertise of federal financial regulators, state regulators, and an independent insurance expert appointed by the President.
 
37
Blanket bond covers embezzlement, defalcation, earthquake, fire, flood, robberies, and other cases in which funds have been stolen.
 
38
US Department of the Treasury—FinCEN (May 24, 2016): Stopping Terror Finance: A Coordinated Government Effort United States House of Representatives Committee on Financial Services Task Force to Investigate Terrorism Financing (Testimony of Testimony of Jennifer Shasky Calvery).
 
39
US Department of the Treasury: A Financial System That Creates Economic Opportunities—Banks and Credit Unions, p. 41.
 
Metadata
Title
The Regulators
Author
Felix I. Lessambo
Copyright Year
2020
DOI
https://doi.org/10.1007/978-3-030-34792-5_5