Lawmakers dismissed recommendations Tuesday to charge the Federal Reserve Board with the responsibility of broadly regulating the systemic risks of the financial industry. U.S. financial regulators told the Senate Banking Committee in a March 19 hearing that the current economic environment is in need of a regulatory overseer, potentially the Federal Reserve, to gauge systemic risks. On Tuesday, the committee heard from banking industry representatives who urged Congress to look to the existing regulatory structure for ways to address systemic risk. The Federal Reserve has directly encouraged the development of a "shadow banking system" consisting of unregulated structure investment vehicles,...
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