WASHINGTON (10/13/08)--The House Financial Services Committee said it will hold a hearing to address the need for “broad regulatory restructuring and reform for the financial markets, including financial institution oversight and regulation, systemic risk, and housing finance.” The hearing is scheduled for Oct. 21. No witnesses were announced. The hearing is a continuation of two hearings held by the committee in July focused on regulatory restructuring and systemic risk, which the committee heard from regulators, according to a statement from the panel. The Oct. 21 hearing will “focus on the extent to which an outdated and weak regulatory system contributed to the current market turmoil and whether adoption of a stronger and more robust financial regulatory system could contribute to a more rapid recovery in the financial markets and the economy.” 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 while improving market liquidity and breadth; * The implications of current governmental lending and support facilities for the regulatory structure; * Proposals to improve the regulatory structure to restore confidence in financial markets and institutions through a stronger system of regulation and oversight; * The need for enhanced capital and reserve requirements for financial firms; and * The adequacy of current powers and coverage of the existing regulatory structure.
The Credit Union National Association will be following the hearings closely.