The nation's most powerful financial regulators published a new blueprint Tuesday for how they will aim to keep banks from engaging in risky, speculative activity.
| January 18, 2011; 3:43 PM ET |
Categories: Federal Deposit Insurance Corp., Federal Reserve, Financial Stability Oversight Council, Regulation, U.S. Treasury
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A top Treasury Department official said Tuesday that federal investigators looking into problems with mortgage foreclosures throughout the country have found widespread and "inexcusable" breakdowns in basic controls in the foreclosure process. "These problems must be fixed," Assistant Treasury Secretary Michael Barr told members of the Financial Stability Oversight Council, the newly formed panel of regulators responsible for identifying potential risks to the financial system.
The new council of regulators empowered by Congress to head off potential risks to the financial system has met only once, but already its work is garnering plenty of attention. If the Financial Stability Oversight Council's second meeting Tuesday produces as much public input as it did after its initial gathering last month, the panel might need to hire more staff. The council, led by Treasury Secretary Timothy F. Geithner and composed of top regulators from the Federal Reserve, Federal Deposit Insurance Corp. and other agencies