Thursday, July 16, 2009

Group calls Fed "tarnished," demands risk monitor

Reuters | July 15, 2009

By Jennifer Ablan and Jonathan Stempel

Some of the biggest U.S. investors and two former top securities regulators warned that a "tarnished" Federal Reserve should not be put in charge of preventing systemic risk in the financial system, a central plank of the administration's response to the credit crisis.

The Investors' Working Group, representing some big money manager firms and led by former Securities and Exchange Commission Chairmen William Donaldson and Arthur Levitt, said on Wednesday the United States should instead create an independent body to serve as watchdog of risk management across the financial sector.

The body proposed by the investors -- the Systemic Risk Oversight Board, or SROB -- would have full-time staff and independent of government agencies and financial institutions.

The SROB would appointed by the President and confirmed by the Senate, and would be accountable to Congress.

The Investors' Working Group said the United States should consider limiting banks' proprietary trading, regulating derivatives more, boosting capital requirements, subjecting insurers to federal supervision, and forcing credit rating agencies to submit to more "meaningful" oversight.

Full article here

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Sheeple



The Black Sheep tries to warn its friends with the truth it has seen, unfortunately herd mentality kicks in for the Sheeple, and they run in fear from the black sheep and keep to the safety of their flock.

Having tried to no avail to awaken his peers, the Black Sheep have no other choice but to unite with each other and escape the impending doom.

What color Sheep are you?

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