Originally appeared in Securities Industry Alert
On June 17, 2009, President Obama announced a proposal to
redesign the financial system of supervision and regulation.
Coupled with this announcement, the U.S. Department of the Treasury
released a report titled "Financial Regulatory Reform A
New Foundation: Rebuilding Financial Supervision and
Regulation" (FRR Report).
Significantly, Section One of the FRR Report, titled
"Promotion of Robust Supervision and Regulation of Financial
Firms," focuses on creating a stronger and more consolidated
regulatory framework to identify and manage firms that pose
potentially significant risks to the entire financial system. To
accomplish this seemingly insurmountable feat, there are proposals
to create three new regulatory agencies: (1) the Financial Services
Oversight Council (FSOC); (2) the National Bank Supervisor (NBS);
and (3) the Office of National Insurance (ONI). As part of this new
approach, the FRR Report advocates
