The US Treasury Departments long-awaited release of its
Blueprint for Financial Regulatory Reform which
included a proposed merger of the Securities and Exchange
Commission (SEC) and Commodity Futures Trading Commission
(CFTC) has raised the debate a notch higher.
The long-awaited report released on March 31 by US Treasury
Secretary, Henry Paulson, advocated a slew of regulatory
reforms that included banking regulation and greater regulatory
powers for the US Federal Reserve Bank.
A merger of the SEC and CFTC fell under medium and long-term
proposals that could take anywhere from two to eight years.
Market participants had differing views, which ranged from
calls for careful reorganisation to outright rejection of the
The competing issues here range from over-regulation
where the US financial services players whether they be
banks, hedge fund managers, futures brokers are put at a
strategic disadvantage relative to the global economy and
non-US players with whom they compete, said Michael
Tannenbaum, a founding partner of Tannenbaum Helpern Syracuse
and Hirschtritt. My fear is that the pendulum will swing
too far towards oversight regulation to the point where it will
be an unreasonable burden.
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