RESOLUTION AUTHORITY: Obama wants a government mechanism for 'orderly resolution of any financial holding company whose failure might threaten the stability of the financial system.'
The proposal is meant to prevent future case-by-case bailouts like those carried out in the hectic final days of the Bush administration during the financial crisis. Frank has also proposed a bill. The Senate has taken no action.
(For the administration's bill, double-click on: http://www.financialstability.gov/docs/regulatoryreform/title-XII_resolution-authority_072309.pdf)
(For the House bill, double-click on: http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Reform/FinancialRegulatoryReform/Titles/title_XII_resolution_authority_7-23-2009finala.pdf)
CAPITAL AND LIQUIDITY STANDARDS: Financial institutions would have to hold more capital to absorb losses when times are tough, and make themselves more liquid, or be able to move quickly in and out of various holdings, under proposals from the Obama administration. That is in line with an accord reached in September at the Group of 20 summit meeting.
(For the administration's bill, double-click on: http://www.financialstability.gov/docs/regulatoryreform/07222009/titleVI.pdf)
(For the G20 final communique, double-click on: http://www.g20.org/Documents/pittsburgh_summit_leaders_statement_250909.pdf)
SECURITIZATION: Issuers of asset-backed securities would face new reporting requirements and be required to keep at least 5 percent of the performance risk in loans they securitize under the plan, under the Obama reform plan.
Transactions would be more standardized and compensation of securitizers would be linked to long-term performance.
Political risk exposure: Citigroup, Wells Fargo, Bank of America, JPMorgan Chase.
(For the administration's bill, double-click on: http://www.financialstability.gov/docs/regulatoryreform/07222009/titleIX.pdf)
(For the House bill, double-click on: http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Reform/FinancialRegulatoryReform/Titles/title_IX_subt_E_securitization_7-22-2009_fnl.pdf)
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The proposal is meant to prevent future case-by-case bailouts like those carried out in the hectic final days of the Bush administration during the financial crisis. Frank has also proposed a bill. The Senate has taken no action.
(For the administration's bill, double-click on: http://www.financialstability.gov/docs/regulatoryreform/title-XII_resolution-authority_072309.pdf)
(For the House bill, double-click on: http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Reform/FinancialRegulatoryReform/Titles/title_XII_resolution_authority_7-23-2009finala.pdf)
CAPITAL AND LIQUIDITY STANDARDS: Financial institutions would have to hold more capital to absorb losses when times are tough, and make themselves more liquid, or be able to move quickly in and out of various holdings, under proposals from the Obama administration. That is in line with an accord reached in September at the Group of 20 summit meeting.
(For the administration's bill, double-click on: http://www.financialstability.gov/docs/regulatoryreform/07222009/titleVI.pdf)
(For the G20 final communique, double-click on: http://www.g20.org/Documents/pittsburgh_summit_leaders_statement_250909.pdf)
SECURITIZATION: Issuers of asset-backed securities would face new reporting requirements and be required to keep at least 5 percent of the performance risk in loans they securitize under the plan, under the Obama reform plan.
Transactions would be more standardized and compensation of securitizers would be linked to long-term performance.
Political risk exposure: Citigroup, Wells Fargo, Bank of America, JPMorgan Chase.
(For the administration's bill, double-click on: http://www.financialstability.gov/docs/regulatoryreform/07222009/titleIX.pdf)
(For the House bill, double-click on: http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Reform/FinancialRegulatoryReform/Titles/title_IX_subt_E_securitization_7-22-2009_fnl.pdf)
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
