U.S. President Barack Obama described the largest of 30's plan for reform of financial regulation, which will affect virtually every part of the banks and all segments of the financial market.

American authorities would like to get leverage, allowing them to regulate the ups and downs of economic activity, preventing formation bubbles, supervise the largest financial firms, the collapse of which could harm the entire economy, as well as to monitor systemic risks.

entrenched culture of irresponsibility on Wall Street to one-American - said in his speech Wednesday, President. - Mode of regulation of financial markets, designed in the wake of economic crisis, the 20 th century - the Great Depression, did not resist the global economy 21 — century, with its speed, size and sophistication.

the White House along with Congress, which must now enact new laws, plans to complete the creation of an updated regulatory system, which, in contrast to the trends of recent decades, leading to greater state influence on the financial markets by the end of the year.

At the same time, many provisions of the plan likely will meet resistance and have been criticized on Wednesday, observers say.

Banks, writes The Wall Street Journal, in particular, fear that the creation of the agency to regulate the consumer market for financial services will hinder the introduction of new products and increasing costs of banks will make loans more expensive.

The new combined bank regulator can complicate, for example, the issue of exotic mortgage bonds, which were widely circulated during the recent boom in the housing market a few years ago and, as it turns out, consumers have been subjected to too great a risk.

Obama believes that regulators should make sure that consumers understand what financial products they receive. In this regard, the new agency might be able to dictate rules for the issuance of certain banking products, will expand the requirement to provide information.

Administration also wishes to raise capital requirements for banks and restrict their ability to take on the risks. This, of course, reduce the profitability of some banks.

Supervision will be more focused on control of the bank holdings as a whole, rather than the individual banks with licenses.

idea of giving the Federal Reserve regulate the function of financial institutions that play a backbone role in the economy, means that the CB will be able to supervise, even for companies such General Electric (which, along with industrial assets, there is a financial unit). As writes Financial Times, this may affect the strategy for corporate-type operator of retail chains Wal-Mart, which had the opportunity to work in the market finuslug.

The idea of empowering the Central Bank is also arguable. The head of the Senate Banking Committee, Christopher Dodd believes that the Federal Reserve in the past ten years have not demonstrated the ability to be a tough regulator and hence the legislators do not trust him special.

In particular, the CB did not stem the tide of granting sub-loans, which subsequently became the detonator of financial crisis. In addition, giving the Central Bank of the functions of control system may create a conflict with its main objectives - maintaining price stability and employment, he said.

In the scope of attention

Federal Reserve will come to hedge funds and private investment funds. They will need to register with the Securities and Exchange Commission.

Association of hedge funds said on Wednesday, reports Bloomberg, that the introduction of registration would be too burdensome for companies that are running which is less than $ 250 million, and negatively affect the development of hedge fund industry.

It is made more transparent and regulated markets for complex financial products (such as credit derivatives). In terms of the President also noted that one of the most significant problems in the securitization market is the lack of sufficient incentives for lenders and sekyuritizatorov to examine changes in the characteristics of the basic credit after the issuance of securities secured by the assets.

Government is encouraged to be empowered to take control of heals, and system-financial companies (namely, such powers to American authorities did not have during the current crisis, in particular, before the collapse of Lehman Brothers).

No financial firm, which represents a significant risk to the financial system should not be unregulated or poorly regulated, the authors consider the reform.

Administration has not zamahivatsya for fundamental reform activities of rating agencies, are proposing only small changes. But it is not being called into question the main principle of operation, when the ratings are paid by issuers. At the same time, according to the plan, public authorities should minimize the use of ratings agencies in their work.

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