CongressionalHearings/Dodd-Frank/CHRG-111shrg54533/CHRG-111shrg54533--95.txt Financial Literacy -- Mr. Secretary , what specific financial literacy responsibilities will the Consumer Financial Protection Agency have?A .2 . CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--274.txt Do you all agree with Federal Reserve Board Chairman Bernanke 's remarks today about the four key elements that should guide regulatory reform ? CongressionalHearings/Dodd-Frank/CHRG-111shrg51395/CHRG-111shrg51395--274.txt Either the Federal Reserve System needs to be fully public , or the systemic risk regulatory function needs to reside elsewhere , perhaps in a committee that would include the Fed Chairman in its leadership . CongressionalHearings/Dodd-Frank/CHRG-111shrg54533/CHRG-111shrg54533--6.txt Finally , Mr. Chairman , a fourth priority is to address the basic vulnerabilities and our capacity to manage future crises . CongressionalHearings/Dodd-Frank/CHRG-111shrg382/CHRG-111shrg382--43.txt Treasury Secretary Geithner and Federal Reserve Chairman Bernanke represent the United States at meetings of the G-20 Finance Ministers and Central Bank Governors . CongressionalHearings/Dodd-Frank/CHRG-111hhrg53021/CHRG-111hhrg53021--20.txt These reforms will bring OTC derivative trading into the open so that regulators and market participants have clear visibility into the market and a greater ability to assess risks in the market . CongressionalHearings/Dodd-Frank/CHRG-111shrg55278/CHRG-111shrg55278--103.txt The Administration 's plan gives the role of Chairman of the Financial Services Oversight Council to the Secretary of the Treasury . CongressionalHearings/Dodd-Frank/CHRG-111shrg52619/CHRG-111shrg52619--171.txt --------------------------------------------------------------------------- Based on the results of these and other efforts , the Federal Reserve is taking steps to improve regulatory requirements and risk management at regulated institutions . CongressionalHearings/Dodd-Frank/CHRG-111shrg52619/CHRG-111shrg52619--210.txt To ensure a comprehensive regulatory system for credit unions , Congress should consider the current dual chartering system as a regulatory model . CongressionalHearings/Dodd-Frank/CHRG-111shrg56376/CHRG-111shrg56376--233.txt Yet although the Federal Government regulates a wide array of financial institutions , no other type of institution has competing Federal regulators . CongressionalHearings/Dodd-Frank/CHRG-111shrg56376/CHRG-111shrg56376--122.txt Enhancement of the Federal Reserve 's Supervision of Systemically Significant Financial Holding Companies The Federal Reserve Board already has strong authority as consolidated supervisor to identify and address problems at large , systemically significant bank holding companies . CongressionalHearings/Dodd-Frank/CHRG-111shrg53085/CHRG-111shrg53085--213.txt A change in federal regulatory culture is essential Consumer advocates have long noted that federal banking agencies give insufficient attention to achieving effective consumer protection . CongressionalHearings/Dodd-Frank/CHRG-111hhrg55814/CHRG-111hhrg55814--185.txt Secretary Geithner , '' But again , this is taking a model that Congress designed for small banks and thrifts , and just adapting it to a system that has outgrown that framework . CongressionalHearings/Dodd-Frank/CHRG-111shrg54533/CHRG-111shrg54533--12.txt Secretary Geithner , '' Senator Shelby , you are right that the Federal Reserve structure , the system established by the Congress almost 90 years ago for the Federal Reserve , is a complicated mix of different things . CongressionalHearings/Dodd-Frank/CHRG-111shrg56376/CHRG-111shrg56376--231.txt Having the CFPA functions within the SEC is my first choice , but if Congress decides against this approach , I could support a standalone agency . CongressionalHearings/Dodd-Frank/CHRG-111shrg53822/CHRG-111shrg53822--88.txt The policy question facing Congress is whether it makes sense to extend FDIC bank resolution processes to other financial institutions . CongressionalHearings/Dodd-Frank/CHRG-111shrg54589/CHRG-111shrg54589--123.txt Should Congress establish a new systemic risk regulator or systemic risk council , that entity also could help monitor institutions that might present systemic risk . CongressionalHearings/Dodd-Frank/CHRG-111shrg54589/CHRG-111shrg54589--123.txt My testimony today on the regulation of OTC derivatives will reflect the SEC 's perspective as the country 's capital markets regulator . CongressionalHearings/Dodd-Frank/CHRG-111hhrg55814/CHRG-111hhrg55814--24.txt The Chairman , '' The Secretary of the Treasury is now recognized for his statement.STATEMENT OF THE HONORABLE TIMOTHY F. GEITHNER , SECRETARY , U.S. CongressionalHearings/Dodd-Frank/CHRG-111shrg53176/CHRG-111shrg53176--160.txt The Federal Reserve Board -- Many people believe the Federal Reserve Board -LRB- the `` Fed '' -RRB- is the most logical body to serve as systemic risk overseer . CongressionalHearings/Dodd-Frank/CHRG-111shrg56376/CHRG-111shrg56376--127.txt The Treasury Proposal would make these types of firms subject to the Bank Holding Company Act and supervision by the Federal Reserve Board . CongressionalHearings/Dodd-Frank/CHRG-111shrg54533/CHRG-111shrg54533--93.txt Role of the Fed -- Secretary Geithner , the Administration proposes to expand the Fed 's powers by giving it authority to regulate systemically significant nonbank financial institutions . CongressionalHearings/Dodd-Frank/CHRG-111shrg54533/CHRG-111shrg54533--93.txt Fed as Consolidated Supervisor -- Secretary Geithner , I find it interesting that , under your proposal , the entire financial industry would be within the Federal Reserve 's regulatory reach . CongressionalHearings/Dodd-Frank/CHRG-111shrg54533/CHRG-111shrg54533--93.txt Financial Services Oversight Council -- Secretary Geithner , the Administration recommends replacing the President 's Working Group on financial Markets with a Financial Services Oversight Council . CongressionalHearings/Dodd-Frank/CHRG-111shrg54533/CHRG-111shrg54533--93.txt Expertise of the Fed -- Secretary Geithner , the Administration 's Proposal chooses to grant the Fed authority to regulate systemic risk because it `` has the most experience '' to regulate systemically significant institutions . CongressionalHearings/Dodd-Frank/CHRG-111shrg54533/CHRG-111shrg54533--93.txt Insurance Regulation -- Secretary Geithner , the Proposal states that the Administration will support measures to modernize insurance regulation , but fails to offer a specific plan . CongressionalHearings/Dodd-Frank/CHRG-111shrg52966/CHRG-111shrg52966--77.txt --------------------------------------------------------------------------- In addition , Federal law provides the Federal banking agencies important enforcement tools to ensure that banking organizations remain safe and sound , including by maintaining adequate capital . CongressionalHearings/Dodd-Frank/CHRG-111hhrg52406/CHRG-111hhrg52406--11.txt These products and institutions escape Federal regulation yet often lead to Federal problems such as our current economic and foreclosure crisis . CongressionalHearings/Dodd-Frank/CHRG-111hhrg48873/CHRG-111hhrg48873--418.txt Secretary Geithner , '' I believe that neither the entire entity nor that particular division was subject to an effective framework of oversight with broad authority and appropriate sophistication in the exercise -- '' CongressionalHearings/Dodd-Frank/CHRG-111shrg55278/CHRG-111shrg55278--112.txt The Obama Administration would create a Financial Services Oversight Council -LRB- an interagency group with its own staff -RRB- to perform this function . CongressionalHearings/Dodd-Frank/CHRG-111hhrg53021/CHRG-111hhrg53021--130.txt And would n't that reduce competition , reduce liquidity , raise prices , and increase systemic risk by consolidating the markets ? '' CongressionalHearings/Dodd-Frank/CHRG-111hhrg48875/CHRG-111hhrg48875--275.txt Secretary Geithner , '' We laid out a broad set of proposals in the legislation and a broad set of principle standards for determining what a systemic risk authority would cover -- '' CongressionalHearings/Dodd-Frank/CHRG-111shrg52619/CHRG-111shrg52619--167.txt It is time to examine the more fundamental issue of whether there are economic benefits to institutions whose failure can result in systemic issues for the economy . CongressionalHearings/Dodd-Frank/CHRG-111hhrg48873/CHRG-111hhrg48873--433.txt Secretary Geithner , '' I do know that the legislation you passed did provide this very important authority for the government to put capital into the financial system . CongressionalHearings/Dodd-Frank/CHRG-111hhrg55814/CHRG-111hhrg55814--29.txt Secretary Geithner , '' Congressman , the central imperative is to make sure that institutions that could threaten the stability of the system are held to tougher constraints on leverage and risk-taking . '' CongressionalHearings/Dodd-Frank/CHRG-111shrg50564/CHRG-111shrg50564--561.txt As Chairman of the G-30 , can you go into greater detail about the report 's recommended reestablishment of a framework for supervision over large international insurers ?