P.M. BRIEFING : Doubts Told on Super Regulator of Securities, Futures Markets
The Federal Reserve Board does not think creating a super regulator is the answer to disputes between the agencies that oversee the securities and futures markets, Fed Chairman Alan Greenspan told a Senate panel today.
“We believe some changes to the existing regulatory system are necessary to avoid the prospect that jurisdictional disputes among regulators will impede innovation in our financial markets, but consolidation of jurisdiction is not necessary to achieve this objective,” Greenspan said in a prepared statement.
Greenspan also said the division of authority between the Securities and Exchange Commission and the Commodity Futures Trading Commission has not increased the sharp price drops that have spooked small investors out of the stock market.
“The board does not believe that the existing division of regulatory authority has increased volatility in the securities markets,” the head of the nation’s central bank told the securities subcommittee of the Senate Banking, Housing and Urban Affairs Committee.
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