White House Plans Unified Banking Regulator

Oversight measures aim for 'minimum' to avoid meltdown

(NEWSER) - Today Barack Obama will announce a major financial reform package that will give the Fed, Treasury, and FDIC new powers of regulation and oversight. It's the most substantial shift in financial regulations since the 1930s—but stops short of some of the most radical proposals, including tough limits on derivatives trading. In an interview with the Wall Street Journal, the president says he wants a "relatively light touch," but that Washington needs to "guard against huge systemic risk." More»

(NEWSER) - President Obama today proposed broad new powers for the Federal Reserve and the creation of new national regulator to ensure against another financial crisis, the Wall Street Journal reports. Under the new plan, the Fed would oversee all components of any banking concern, even its foreign affiliates, and Treasury would have the power to take over and restructure any company. Obama called it a “sweeping overhaul.” More»

Three-part program will push investors to buy toxic assets

(NEWSER) - The Treasury unveiled its three-part Public-Private Investment Program today, reports the Wall Street Journal. Under the program, up to $100 billion in TARP funds will be partnered with private investments to buy troubled assets. The Treasury, Federal Reserve, and FDIC will work with hedge funds and private equity to try to restart the market, and taxpayers will gain if investments turn profitable. More»

But officials and execs cite successful effort to battle bad loans

(NEWSER) - The 165 banks that toppled like dominoes in the financial crisis have stuck the FDIC with a hefty tab to the tune of $9 billion, the Wall Street Journal reports. Regulators have helped shoulder the burden of bad assets and loans at the failed banks; the loss-sharing agreements encouraged healthier institutions to purchase failed ones. The FDIC, which has agreed to take on most future losses in the arrangements, expects to shell out another $21.5 billion over the next three years. More»

But it won't name names yet

(NEWSER) - The FDIC has launched criminal investigations targeting around 50 executives, directors, and employees from banks that failed during the financial crisis. Regulators won’t say which banks or executives are under investigation yet, but did tell the Wall Street Journal that banks of all sizes from across the country are involved, suspected of recklessness, fraud, and other criminal behavior. More»