Washington, DC—House Financial Services Committee Chairman Barney Frank (D-MA) today announced the second in a series of hearings on the policy implications of the transformation of domestic and international financial markets, with a primary focus on the rise of potential systemic risk associated with the dramatic growth in the share of assets held outside the commercial banking system, the complex arrangements that link firms that are regulated differently (or not at all) and the increasing amount of leverage. Witnesses for this hearing will be New York Federal Reserve President Timothy Geithner, S.E.C. Chairman Christopher Cox.
The committee will explore the adequacy of current oversight and regulatory tools, and the extent to which existing structures are adequate to respond to future problems. Specifically, the hearings will examine:
Current state of the financial regulatory system, both in the United States and abroad, and ways to measure and limit risk without stifling innovations and improve market liquidity and breadth.
The implications of providing investment banks and others access to the discount window.
In light of the collapse of Bear Stearns, proposals to improve the regulatory structure to better assess and mitigate systemic risk to avoid a similar or more serious crisis in the future.
The need for enhanced capital and reserve requirements for financial firms.
The adequacy of current powers of the Federal Reserve and other regulatory agencies to protect the financial system and the taxpayers.
