White Paper Available on the Restoring American Financial Stability Act

The Senate Banking Committee has released draft legislation providing for a sweeping overhaul of the regulation of US financial services and markets. The overhaul of the US financial regulatory system is based on the themes of regulating systemic risk, enhancing transparency and disclosure, delinking executive compensation from excessive risk, expanding consumer and investor protection, and preventing regulatory arbitrage. The draft provides for the regulation of hedge funds, and OTC derivatives, as well as draft legislation on a new resolution authority to unwind failing financial firms. The legislation provides for major corporate governance reforms, such as shareholder advisory votes on compensation and enhanced compensation committees. The draft also envisions a completely reformed securitization process playing an important role in the financial markets. A new independent regulator would be created with authority to make sure that consumer protection regulations are written and enforced.

Click here for white paper on the Restoring American Financial Stability Act.

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