Frank Calls for Increased Regulation

House Financial Services Committee Chairman Barney Frank (D., Mass.) today called for major changes to the way financial services are regulated.

Frank

“Among his proposals:

Create a Financial Services Risk Regulator, which would monitor systemic risk. Rep. Frank said the Federal Reserve could also be given this power. The regulator would have the "capacity and power to assess risk across financial markets regardless of corporate form and to intervene when appropriate," Rep. Frank's office said. The regulator would also have access to information from investment banks that might use the discount window. The regulator would also "report to Congress on the health of the entire financial sector and act when necessary to limit risky practices or protect the integrity of the financial system."

Consolidate supervision. Rep. Frank calls the current format "duplicative."

Make changes to regulatory capital, margin, and leverage requirements.

–Damian Paletta