|With the meltdown of the U.S. economy and financial landscape in 2008 it was clear that the regulatory environment in the U.S. financial services industry was in store for a major shake‐up. |
Since then there have been numerous calls from various the subprime mortgage crises and the overall slowdown in the economy. Simply put gaps and weaknesses in the supervision and regulation of financial firms presented challenges in the government’s ability to monitor, prevent and address risks as they built up in the U.S. financial system.
On June 17.2009 the Obama Administration responded to the calls for stronger regulation of financial institutions as the lack of a robust regulatory framework was viewed as one of the major contributing factors that led to the failures of several notable institutions. The Financial Regulatory Reform Plan represents the most far‐reaching shake‐up of the U.S. financial services industry since the great depression. The Financial Regulatory Reform Plan will change the regulation of all lenders and their holding companies, give the Federal Reserve supervisory power over large and complex entities that pose a systemic risk to the financial system, create a new consumer protection agency, and provide tools for managing future financial crises.
Deblankson published a guide in which they examine the key proposals put forward in the Financial Regulatory Reform Plan while highlighting areas not covered in the plan, and they assess the impact that these proposals will have on the financial services industry going forward.