What the financial sector needs is an overarching systemic regulator, said Tim Ryan, president & CEO of the Securities Industry and Financial Markets Association [SIFMA].
“We'd like to see a systemic regulator with veto power over the other regulators,” he told CNBC. “What we've seen over the last year are risks which are interconnected, which existing regulators really do not have insights into those risks.”
The advantage of such a structure, said Ryan, would be to provide information about aggregated interconnected risks to regulators.
This comes at a time when lawmakers are preparing regulatory reform packages for the financial sector. The Obama administration's plan is due mid-June.
“Surely there will be other primary regulators and there needs to be a boss ultimately on some of the issues they have disagreement,” he said. “Right now we really don't have that. We have a president's working group which has to do it on a consensus basis."
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