* WASHINGTON (3/10/10)--The New York Times
Tuesday reported that the Senate’s upcoming financial regulatory reform plan would limit the Federal Reserve’s regulatory powers to the largest of banks. The story, which was based on anonymous sources, said that under the new regulatory plan, which is expected to be released this week, the Fed would only cover banks with over $100 billion in assets, effectively limiting the Fed’s influence to 23 of the nearly 5,000 bank holding companies on U.S. shores. Banks that are not covered by the Fed will be overseen by a new regulator that is comprised of a potentially merged Office of the Comptroller of the Currency and Office of Thrift Supervision. State banks would fall under the purview of the Federal Deposit Insurance Corp. Sens. Chris Dodd (D-Conn.), Bob Corker (R-Tenn.) and Mark Warner (D-Va.) reportedly support the plan. Sens. Judd Gregg (R-N.H.) and Mike Johanns (R-Neb.) oppose the plan, according to the Times
… * WASHINGTON (3/10/10)--Thirty-nine members of Congress have provided their support for the 2010 Credit Union Cherry Blossom Ten
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Mile Run by signing up as honorary race chairs. The legislators represent 22 states and the District of Columbia. The run will be held April 11 in Washington, D.C. PSCU Financial Services is the lead corporate sponsor. The money earned from the race will benefit Children’s Miracle Network hospitals. Runners and other individuals have donated more than $150,000 in the online giving program for the 2010 run. Credit unions also will provide 500 volunteers who will serve on race day. Last year, the run had 133 sponsors, including 95 credit unions. Roughly 15,000 runners participated. This will be the ninth year credit unions have sponsored the event. Through the sponsorship, credit unions have donated $4 million to Children’s Miracle Network hospitals. The pictured map indicates which U.S. states have honorary chairs and where children’s hospitals are located. (Photo provided by PSCU Financial Services) ... * WASHINGTON (3/10/10)--Federal Deposit Insurance Corp. (FDIC) Sheila Bair said financial reform should include nonbanks. She spoke Monday to a business economists group. Reforms enacted after the thrift crisis of the 1980s contributed to safer industry practices, but the reforms “erred” because they excluded nonbanks and provided incentives for financial services to grow outside of the regulated sector, she said (American Banker
March 9). The measures put in place to eliminate moral hazard encouraged risk-taking by nontraditional bankers in the “shadow banking system,” she added. Policymakers are debating financial reform and making sure it affects all aspects of the financial industry ...