Regulators want it thougher..
2008-12-09
News
Whereas just months ago concerns about economic conditions were theoretical and abstract, they are now practical and concrete.
Regulators on all levels are scrambling to identify problems, plug any holes and define their roles as defenders of the public good, according to a report By Aite Group. The study looks at the possible regulatory and legislative responses to the financial crisis
Aite Group said three central themes will guide the regulatory and legislative response over the coming years: First, regulators will be stepping forward with stronger controls designed to measure and manage the risks carried by institutions.
Second, there is likely be some operational controls imposed on institutions. Third, Aite said institutions should expect regulators to shift the balance back toward the consumer, with efforts focused on providing more and better consumer protections.
The report noted that congress is sympathetic to consumer pain and aware of consumer anger against the market participants and financial institutions. The anger is also directed again regulators who were supposed to be watching the participants and institutions.
As a result changes are fairly certain to occur in the next 12 to 24 months. Consumers, regulators and institutions appear to agree there is shared blame for the current problems. It will be important to act with a combination of speed and caution. The question is how far the pendulum will swing toward consumers although sweeping changes that favour consumers seem likely, concluded the report.
News
Whereas just months ago concerns about economic conditions were theoretical and abstract, they are now practical and concrete.
Regulators on all levels are scrambling to identify problems, plug any holes and define their roles as defenders of the public good, according to a report By Aite Group. The study looks at the possible regulatory and legislative responses to the financial crisis
Aite Group said three central themes will guide the regulatory and legislative response over the coming years: First, regulators will be stepping forward with stronger controls designed to measure and manage the risks carried by institutions.
Second, there is likely be some operational controls imposed on institutions. Third, Aite said institutions should expect regulators to shift the balance back toward the consumer, with efforts focused on providing more and better consumer protections.
The report noted that congress is sympathetic to consumer pain and aware of consumer anger against the market participants and financial institutions. The anger is also directed again regulators who were supposed to be watching the participants and institutions.
As a result changes are fairly certain to occur in the next 12 to 24 months. Consumers, regulators and institutions appear to agree there is shared blame for the current problems. It will be important to act with a combination of speed and caution. The question is how far the pendulum will swing toward consumers although sweeping changes that favour consumers seem likely, concluded the report.