|
CNBC'S MOST SHARED
- A Goldman Trading Scandal?
- Rich People With A Death Wish
- The Threat of Ballooning Pensions
- Lehman CEO: Firm Deserved Bailout or 'Wind Down'
- SEC May Reinstate Rules for Short-Selling Stocks
- Market's Monday Blues
- Is Andy’s Mojo Back? We Asked Him
- Your First Move For Monday July 6th
- China Launches Major Step to Yuan Internationalization
- Russian President Calls Obama Summit 'Important Step'
- Goldman Sees No Harm From Computer Programmer
- Farrell: Don't Head For The Exits Yet
- Justice Dept Said to Be Looking At Telecom Giants
- Lehman CEO: Firm Deserved Bailout or 'Wind Down'
- GM to Get Final $20 Billlion From US This Year
- US Service Sector Has Best Showing In Months
- Tribune, Cubs Deal Agreed In Principle
- Facebook Director Sees 'Billions' in Revenue in 5 Years
- 5-Star Manager's 5 Top Stocks
- Hey, What's Up Doc?
- Busch: Summertime Blues Hits Investors
- Chadwick: Recession and Scandals Pave the Way for Romney 2012
- Art Cashin: The S&P's 'Head and Shoulders' Number
- Michael Jackson: Death And Taxes
- Is Andy’s Mojo Back? We Asked Him
- GM A Step Closer To Exiting Bankruptcy
- Schork Oil Outlook: The Fear Trade
Text Size 
U.S. Treasury Secretary Henry Paulson is expected to urge that the Federal Reserve be given new powers to regulate Wall Street after the collapse of brokerage Bear Stearns, U.S. media reported on Wednesday.
 |
CNBC.com Henry Paulson |
"We should quickly consider how to most appropriately give the Fed the authority to access necessary information from highly complex financial institutions and the responsibility to intervene in order to protect the system, so they can carry out the role our nation has come to expect - stabilizing the overall system when it is threatened," Paulson will say, according to prepared remarks obtained by the newspapers.
Bear Stearns, once the fifth-largest U.S. investment bank, was sold in March to JPMorgan Chase [JPM
Loading...
()
] in an emergency takeover deal orchestrated by the U.S. central bank in close consultation with the Treasury Department.
In a speech earlier this month, New York Federal Reserve President Timothy Geithner said regulatory reforms should mitigate and reduce the need for future interventions, but that it was not realistic to attempt pre-emotively to diffuse pockets of risk and leverage.
"I do believe, however, that we can make the system better able to handle failure by making the shock absorbers stronger," Geithner said.
The Bear Stearns takeover came after the firm's sudden collapse, when investors and trading partners withdrew their business and their cash from a bank heavily exposed to the U.S. mortgage crisis.
Top U.S. regulators defended the rescue arguing that Bear Stearns could not be allowed to collapse because it could have shattered confidence in financial markets and caused lasting damage to the economy.
It was the Federal Reserve's first rescue of a broker since the Great Depression in an effort to soothe financial markets roiled by fallout from rising mortgage defaults.
Print
Email
Data is a real-time snapshot *Data is delayed at least 15 minutes