The Department of the Treasury , the Federal Reserve , and the Federal Reserve Bank of New York acted to prevent the collapse of AIG .
Delinquencies on credit card accounts have significantly increased as a result of rising unemployment and uncertainty in the economy .
Regulatory failure by the banking regulators and the SEC in setting appropriate risk-based capital reserve requirements for investment and commercial banks ; iv .
Credit risk reflects the borrower 's financial situation , the terms of the loan and the value of the home .
Regulators should promulgate additional regulations to align compensation of market participants with longer term performance of the underlying loans .
Secretary Geithner recognized that multiple Federal regulatory agencies should play critical roles in implementing the proposed framework , including the SEC and the CFTC .
Overreliance on Credit Ratings -- Poor disclosures and overly complex deals caused investors to over rely on credit ratings .
I understand the desire of firms to hedge their risks , whether those risks are interest or exchange rates , commodity prices , credit exposure , or something else .
As an initial matter , it is important to emphasize that the Federal Reserve 's new regulations do not prohibit risk-based pricing .
Federal regulation of securities , commodities , exchanges , and derivatives has developed over time and reflects the evolution of the capital markets .
In addition , the Federal Reserve provides the public and the Congress with detailed annual reports on the consolidated financial activities of the system .
The results from the Federal Reserve 's Senior Loan Officer Opinion Survey on Bank Lending Practices indicate that both the availability and demand for bank loans are well below pre-crisis levels .
Mr. Vice Chairman , you a moment ago articulated Congress ' mandate to the Federal Reserve with respect to maximum employment and to price stability .
Giving some of the SEC 's duties to a systemic risk regulator or to a financial services consumer protection agency ; 2 .
--------------------------------------------------------------------------- Public disclosure of conflict of interest information should improve transparency surrounding the information and processes used by rating agencies for rating products .
The existing , divided regulatory approach has resulted in jurisdictional disputes between the SEC and the CFTC , regulatory inefficiency , and gaps in investor protection and market oversight .
SEC rules also should hold shareholder proponents -- and not companies -- responsible for the disclosure those shareholders provide .
Municipal Securities Issuer Disclosure : ICI strongly urges Congress and the SEC to improve the content and timing of required disclosures regarding municipal securities .
\ 30 \ A member of Congress intimately involved in this debate later concurred with the SEC 's interpretation in a letter to then SEC Chairman Arthur Levitt .
SEC Chairman Mary Schapiro recently indicated that the SEC will soon consider a proposal `` to ensure that a company 's owners have a meaningful opportunity to nominate directors . ''
The SEC 's announcement of a new Industry and Market Fellows Program is an encouraging step in the right direction .
In particular , ICI recommends that the SEC expand the list of information that is required to be disclosed under current SEC rules .
Additionally , in 2003 , the SEC staff recommended that the SEC consider eliminating the prohibition on general solicitation in offerings by certain hedge funds .
We note that , in testimony before the House Financial Services Committee in March of this year , SEC Commissioner Elisse Walter stated that the SEC 's examination and enforcement resources are inadequate to keep pace with the growth and innovation in the securities markets .
I think this loss of Federal Reserve independence is a serious issue , especially at this time of rapidly growing Federal debt and greatly expanded Federal Reserve balance sheet .
My fourth concern is that by giving so much new power to the Federal Reserve , that the plan would actually threaten the Fed 's independence regarding monetary policy .
Since the crisis began , we have discovered a limited market knowledge here in D.C. , in the Federal Reserve , Treasury , Congress , and the SEC .
I would give the Federal Reserve clear responsibility for Macro System Stability , reporting periodically to Congress and coordinating with a Financial System Oversight Council .
These are the areas I ask Congress to focus on going forward so that when economic conditions improve , institutions will return to the securitization markets .
Views on Securitization Policy and Market Reform Initiatives Numerous policy and market reforms aimed at the securitization market have been advanced in response to the broader financial market crisis .
\ 8 \ Overall , recent data collected by the Federal Reserve Board show that securitization has provided over 25 percent of outstanding U.S. consumer credit .
We believe Congress should require that the SEC act as arbiter to determine whether each issuer is in compliance with their stated disclosure requirements .
For these reasons , we need to finish the work the Federal Reserve Board began last year and adopt uniform Federal underwriting standards for mortgages that apply to all mortgage actors across the board .
Strengthen and Build on SEC Supervision Under the authority created by this Committee in 2006 , the SEC has already begun to address many problems with rating agencies .
SEC Staffing , Funding , and Management : The SEC has a staff of about 3,500 full-time employees and a budget of $ 900 million .
Thus , Congress or the SEC must draw a careful line so as not to permit the clearinghouse requirement to be trivialized.Q .4 .
This is best accomplished by making the SEC at least partially `` self-funding , '' specifically by allowing the SEC to keep the fees and other charges that it levies on issuers , brokers and other regulated entities .
If regulation to strengthen shareholder rights does not occur at the Federal level , it will be up to the States to move forward .