The GAO has issued a report urging an overhaul for existing US regulators
WASHINGTON, DC - The US Government Accountability Office (GAO) has issued a report concluding that the US regulatory system requires drastic reform. The report, entitled 'A Framework for Crafting and Assessing Proposals to Modernize the Outdated US Financial Regulatory System', outlines naine principles for a new regulatory system.
It is widely anticipated that the incoming Obama Presidential administration will overhaul the US regulatory structure. Speculation around a US regulatory reformation has been further fuelled by the grilling of the US Securities and Exchange Commission (SEC) in Congress, in the wake of its failure to avert or detect earlier the $50 billion Madoff fraud.
The GAO says the new environment must be more "efficient and effective", stopping short of explicitly calling for the dissolution of some of the existing agencies, as the US Treasury did in its March 2008 regulatory blueprint.
The GAO has been calling for regulatory reform since 1994, and began drafting its current report in April 2008 - after the Bear Stearns collapse but before the majority of the current wave of financial turmoil, institutional failures and government bailouts.
The report may be downloaded here.
More on Regulation
National conflicts in margin rules can only be fixed via mutual recognition
OpRisk Asia: Revised standardised approach an improvement but no panacea
OpRisk Asia: New market structures have led to op risk primacy
Strict classification of structured products into 'complex' and 'non-complex' criticised
Sign up for Risk.net email alerts
Catch up with the debate at OpRisk's flagship London conference
Sponsored video: Elseware
Oxford professor David Vines argues that the carrot is as important as the stick
Sponsored webinar: IBM
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.