In 2003 , I introduced the first legislation which sought to bring Fannie and Freddie and the Federal Home Loan Bank System under one strong regulator within the Federal Government .
The Federal Reserve already has begun to incorporate a systemically focused approach into our supervision of large , interconnected firms .
Indeed , Mr. Chairman , you sought those additional powers , and as a result , the Fed is central to maintaining our financial stability .
Finally , Mr. Chairman , a fourth priority is to address the basic vulnerabilities and our capacity to manage future crises .
We can protect investors and oversee hedge funds in a responsible way that does not harm the competitiveness of U.S. markets .
In a very real sense , the U.S. Government is now backing the world 's largest speculative investment funds -- without any effective oversight mechanisms .
To that end , Congress should establish a Financial Company Resolution Fund -LRB- FCRF -RRB- to provide working capital and cover unanticipated losses for the resolution .
The Administration proposal includes eight members on the Council : the Secretary of the Treasury -LRB- as Chairman -RRB- ; the Chairman of the Federal Reserve Board ; the Director of the National Bank Supervisor ; the Director of the Consumer Financial Protection Agency ; the Chairman of the Securities and Exchange Commission ; the Chairman of the Commodities Futures Trading Commission ; the Chairman of the FDIC ; and the Director of the Federal Housing Finance Agency .
Mr. Kashkari , '' Good morning , Mr. Chairman , Ranking Member Bachus , and members of the committee .
We have a high level Firmwide Business Practices Committee which focuses on operational and reputational risk , including conflict management .
Discussion then turned to possible Federal Reserve and Federal Government actions and consideration of the credit facility announced that night .
Finally , Mr. Chairman , the Subcommittee is focused on the more specific issues revolving around the mortgage securitization market .
Commercial banks enjoy a Federal Government safety net in the form of access to Federal deposit insurance , the Federal Reserve discount window , and Federal Reserve payment systems .
Among U.S. bank holding companies , the following institutions held enormous OTC derivatives positions as of June , : .
Among the Federal banking agencies , the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation each are independent from Treasury for all purposes .
In the FDIC 's view , uncertainty about government action and interventions has been a source of systemic risk .
It also creates overlap and the potential conflict between the Federal banking agencies , which are responsible for mortgage lending activities , and the Federal Trade Commission .
We support giving the financial markets stability regulator the authority to gather information from all U.S. financial institutions and markets in order to identify systemic risk and maintain financial stability .
PREPARED STATEMENT OF PAUL A. VOLCKER Chairman , President 's Economic Recovery Advisory Board February 2 , 2010 Mr. Chairman , Members of the Banking Committee : You have an important responsibility in considering and acting upon a range of issues relevant to needed reform of the financial system .
These agencies granted Federal banking charters whereas the FDIC and Federal Reserve have oversight regarding charters granted by the States .
The Council is required to report to Congress each year on these risks and threats and to coordinate action by individual regulators to address them .
Role for Congress -- Secretary Geithner , the Administration 's Proposal grants the Fed and several other agencies vast new powers .
Fed v. Systemic Risk Regulator -- Secretary Geithner , despite strong opposition in Congress to expanding the powers of the Fed , the Administration has proposed doing just that .
MR. BULLARD.
Recent data on the U.S. economy have been stronger than forecast , keeping economic performance weak but avoiding a particularly sharp contraction .
The Federal Reserve is also the primary Federal supervisor of State-member banks , sharing supervisory responsibilities with State supervisory agencies .
The Board believes that moving toward centralized clearing for most or all standardized OTC products would have significant benefits .
By reducing liquidity on U.S. exchanges , this would undermine the Congress ' attempt to establish greater transparency , price discovery , and risk management of U.S. markets .
Mr. Castle is right , a relatively small number of the bad subprime loans were made by depository institutions subsequent to the Community Reinvestment Act .
The Federal Reserve 's legal authority largely limits Federal Reserve purchases of securities to Treasury , agency , and agency-guaranteed securities .
Housing Wealth : Chairman Bernanke , the recent decline in home prices in many parts of the country followed several years of extraordinary home price appreciation .
The purpose of today 's hearing is to oversee the Federal Open Market Committee 's conduct of monetary policy .
Three , regulatory failure by the banking regulators and the SEC in setting appropriate risk-based capital reserve requirements for investment in commercial banks .
They have helped stabilize the money market mutual funds , commercial paper market , the repo market , many other important financial markets .
To promote market integrity , the business conduct standards should include prohibitions on fraud , manipulation and other abusive practices .
The continued ability of banks , thrifts , and other entities in the United States to compete in today 's global financial services marketplace is critical .
Finally , in the on-going process to improve consumer protections , it is time to examine curtailing federal preemption of state consumer protection laws .
Any new Federal role in insurance regulation should build on the industry 's very positive risk management characteristics and the current regulatory structure .
From the outset of the credit crisis , the Federal Home Loan Banks have engaged to ensure liquidity to the financial system .
Congress , working with the Administration , must act to help put in place regulatory reforms to help prevent future meltdowns like this one .