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ANALYSIS
March 2, 2009
Sagging Index no longer reflects what’s going on in the market, some say, Replacements? Google it, to start.
March 2, 2009
Downward price spiral will actually boost the cost of capital for most companies. CFOS, take note.
March 2, 2009
The latest bailout at AIG could be a preview of how the president will deal with Wall Street.
March 2, 2009
No corporate defaults. Big debt offerings. Percolating CP issuance. Things may be looking up in the capital markets.
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March 2, 2009 12:18 PM ET
HREF= "http://www.crainsnewyork.com/apps/pbcs.dll/frontpage">Crain’s)—Sen. Charles Schumer said Monday that more aggressive regulation is needed in order to ensure New York maintains its standing as the world’s capital of finance. That view contrasts starkly with his opinion of just two years ago, when he issued a report warning that the U.S. regulatory environment was a “competitive disadvantage” driving banking business to London and other overseas markets. One massive economic crisis later, Mr. Schumer said that a strong financial-services regulator is needed to help rebuild confidence in U.S. markets, because jittery investors around the world are looking for places where they can trust that tough regulators will protect their interests. To that end, he called for the most dramatic overhaul of the U.S. financial regulatory system since 1933 and urged the new regulators be granted the power to “get in ahead” of problems before they explode. “We need a smarter regulator, a tougher regulator,” he said, adding that he would like to see the Securities and Exchange Commission move its headquarters to New York from Washington so it can be closer to the banks and brokerage houses it is charged with overseeing. He added that federal regulation of financial services should be overhauled to become more global in scope and that supervisors should be watching for “systemic risk” so that problems at places like American International Group do not infect the entire system. Mr. Schumer, a member of the Senate Banking Committee, said that a regulatory reform bill would be presented to President Barack Obama by April. Two years ago, Mr. Schumer, along with Mayor Michael Bloomberg, released a report prepared by consulting firm McKinsey & Co. which warned that the regulatory system was a big problem that threatened New York’s standing as the world’s financial capital. “Our regulatory framework is a thicket of complicated rules, rather than a streamlined set of commonly understood principles, as is the case in the United Kingdom and elsewhere,” the report said. “Business leaders increasingly perceive the U.K.’s single, principles-based financial sector regulator…as superior to what they see as a less responsive, complex U.S. system.” At a breakfast event on Monday, Mr. Schumer observed that markets and economic conditions are even worse in London and other leading financial centers than they are in New York. The British government, which not long ago was praised by many on Wall Street for its lighter, “principles-based” approach to regulation, has had to shovel over much more assistance to rescue some of its ailing banks than the U.S. British taxpayers now control a 95% stake in the Royal Bank of Scotland, for example, while the U.S. possesses a 36% stake in Citigroup. Mr. Schumer also observed that the derivatives business that triggered the collapse of AIG was based in London, not New York.
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Latest News
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