USA: financial regulation reform - framework outlined by Treasury

The US Treasury has begun to outline its proposals for the development of a new model of financial regulation. Yesterday proposals with regard to systematic risk were outlined (forthcoming proposals will address the protection of consumers and investors, removing gaps in the regulatory structure and fostering international cooperation). The new framework has been described as "new rules of the road" not "modest repairs at the margin" by Treasury Secretary Timothy Geithner. In broad outline the proposals concerning systematic risk include: 

• A single independent regulator with responsibility over systemically important firms and critical payment and settlement systems
• Higher standards on capital and risk management for systemically important firms
• Registration of all hedge fund advisers with assets under management above a certain threshold
• A comprehensive framework of oversight, protections and disclosure for the OTC derivatives market
• New requirements for money market funds to reduce the risk of rapid withdrawals

For comment see here (International Herald Tribune) and here (Financial Times).