Congress meets with banking industry
Share Now on:
TEXT OF STORY
Bill Radke: Meanwhile, Congress is holding at least half a dozen hearings this week on the U.S. banking industry. Steve Henn reports that members would rather be back home campaigning, but they also want to come up with a plan for after the election.
Steve Henn: Arthur Levitt, the former chairman of the SEC, is pretty blunt when discussing what led up to the current mess:
Arthur Levitt: Our regulatory system failed to adapt to important, dynamic, and potentially lethal new financial instruments.
Levitt told the Senate Banking Committee last week the system is now broken:
Levitt: We need a dramatic rethinking of our financial regulatory architecture — the biggest since The New Deal.
Mike Calhoun is president of the Center for Responsible Lending. He says job one is plugging the gaps in oversight.
Mike Calhoun: Many of the worst subprime loans were sold by firms that operated under state charters and had very little supervision.
The industry knows more oversight is coming, especially in entirely unregulated areas like the multitrillion-dollar market in credit default swaps.
In Washington, I’m Steve Henn for Marketplace.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.