Bank Systems & Technology is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


09:34 AM
Connect Directly

U.S. Banking Sector One Step Closer to Super Regulator

The financial services industry should expect to be governed by a single regulator in the near future. According to a report in The Wall Street Journal, the Obama administration may recommend that Congress work on creating one regulator for the entire financial sector.

Plans are still in the very early stages, however, it is thought that the Office of Thrift Supervision and Office of the Comptroller of Currency would be combined and that the FDIC and Federal Reserve would be stripped of some of their current supervisory powers. However, the Fed and FDIC would gain new powers under the proposal, such as allowing the Fed the authority to over see systemic economic risk and giving the FDIC new powers to take large financial companies that aren't banks into receivership, noted the Journal.

The "super regulator" proposal is expected to be part of a broader announcement from Treasury Secretary Timothy Geithner in which he will present his plan to overhaul the entire financial system's regulatory structure.

Still, the article continues, the Obama administration may not even approve a single regulatory body in the end, instead perhaps favoring a more streamlined approach to regulation.

Register for Bank Systems & Technology Newsletters
Bank Systems & Technology Radio
Archived Audio Interviews
Join Bank Systems & Technology Associate Editor Bryan Yurcan, and guests Karen Massey and Jerry Silva from IDC Financial Insights, for a conversation about the firm's 11th annual FinTech rankings.