The US government is a step closer to having the power to dismantle large financial institutions after a House of Representatives Committee voted through the proposals.Under the terms of the bill, a new council of regulators would be set up.To be known as the Financial Services Oversight Council, it would have the power to break up firms deemed to have grown too large and influential – even if they are in excellent financial health.When considering breaking up a bank, the council would look into the “scope, scale, exposure, leverage [and] interconnectedness of financial activities”.Democrat Paul Kanjorski, a sponsor of the proposal, said: “No firm should be considered to be too huge to fail.”Financial firms that want to play in a casino need to have their own resources to cover their bets and not assume that tax dollars are available in reserve if their bets fail.”The bill is being opposed both on Wall Street and in sections of the Republican Party, on the grounds that it would hand too much power to regulators while putting financial institutions at a disadvantage by making them downsize.It was slightly amended this week to say that the government would only intervene when organizations present a “grave threat” to the financial system, but has still been met with opposition.Scott Talbot, a senior lobbyist for the Financial Services Roundtable, told the Associated Press that Wall Street continued to be against the thought, despite the proposal being made more moderate.The bill needs to be passed by the House of Representatives and ratified by the Senate before it becomes law.It is just one of a series of thoughts proposed by politicians to better regulate global banking.Earlier this month, UK prime minister Gordon Brown suggested that a tax on transactions between financial institutions should be introduced to provide the funds to pay for any future bailouts.
Posts Tagged ‘Gordon Brown’
US government may be given power to break up banks
November 20th, 2009 
Before You Invest 
Posted in Finance Fraud 
Tags: Bets, Democrat, Financial Health, Financial Institutions, Global Banking, Gordon Brown, Grave Threat, House Of Representatives, Interconnectedness, Leverage, Lobbyist, Oversight Council, Own Resources, Paul Kanjorski, Prime Minister Gordon Brown, Regulators, Representatives Committee, Republican Party, Talbot, Tax Dollars 
No Comments »UK regulators will be able to rip up bankers’ contracts
November 17th, 2009 Before You Invest The UK government is set to bring in legislation that will allow the Financial Services Authority to rip up the contracts of bankers deemed to be enjoying excessive pay packets as a reward for risk-taking.Although the new Financial Services Bill will not apply to current banking contracts and therefore will not affect 2009 bonuses, it is set to come into place from January next year.The measures are to be outlined on Wednesday in the Queen’s Speech.In comments reported by the Guardian, City spokesman Lord Myners told Sky News: “What we are saying to the shareholders and boards of directors is: get real, recognize that the previous levels of bonuses are socially unacceptable.” Other proposals that will be place forward by Gordon Brown’s government include one that will allow British customers to take part in US-style class action suits against financial institutions they feel have treated them terribly.Last week, Mr Brown sent officials to meet with the IMF to lobby for the implementation of a Tobin tax – a levy on transactions carried out between financial institutions.
Posted in Finance Fraud Tags: Boards Of Directors, British Customers, City Spokesman, Class Action Suits, Contracts, Financial Institutions, Financial Services Authority, Financial Services Bill, Gordon Brown, Imf, Levy, Mr Brown, Myners, Proposals, Shareholders, Sky News, Style Class, Tobin Tax, Uk Government, Uk Regulators No Comments »U.S. criticizes U.K. proposal to tax financial transactions
November 9th, 2009 Before You Invest Treasury Secretary Timothy Geithner voiced disapproval with a proposal from U.K. Prime Minister Gordon Brown for a tax on financial transactions. Geithner said he would not support the tax but appeared to soften his stance later, saying the International Monetary Fund would be responsible for coming up with possibilities.
Posted in Finance Fraud Tags: Borders, Contingent Capital, Finance Minister, Financial Transaction, Financial Transactions, Gordon Brown, Imf, Insurance Fee, International Monetary Fund, Levy, Mr Brown, Opponents, Possibilities, Prime Minister Gordon Brown, Proposal, Proposals, Systemic Risk, Treasury Secretary, Voiced Disapproval, Volatility No Comments »Geithner, Brown Split on Tobin Tax at G-20 Meeting
November 9th, 2009 Before You Invest (Bloomberg) — Group of 20 governments split on whether to tax financial trading as part of a broader strategy to ensure the global economy’s expansion is less crisis-prone.U.K. Prime Minister Gordon Brown told a meeting of finance chiefs in St. Andrews, Scotland yesterday that such a levy could prevent excessive risk taking and fund future bank rescues, adding momentum to a debate begun by France.
Posted in Finance Fraud Tags: Amp, Apps, Banking System, Excessive Risk, Finance Chiefs, Financial Crisis, Global Economy, Gordon Brown, Great Depression, Levy, Momentum, Pid, Prime Minister Gordon Brown, Risk Taking, Speculation, St Andrews Scotland, Timothy Geithner, Tobin Tax, Treasury Secretary, U S Treasury No Comments »
