Council of Regulators Likely to Oversee Bank Risk

Amidst the plethora of banking reforms proposed in response to the economic crisis, a major point of contention has been the question of who should be in charge of oversight. Some members of Congress have sought to rein in the power of the Federal Reserve, while others favored giving the central bank oversight responsibilities. According to the New York Times, now it looks as though Congress and the Obama administration are on the verge of agreeing to form a council of regulators, led by the U.S. Treasury, to detect and mitigate excess risk and systemic instability. The proposed council would be chaired by the Treasury Secretary, while the Fed Chairman would act as vice-chair.