In this sense I think that it is understandable the I ask because that loss of confidence about the ability of the Fed to regulate the financial system can increase sensitivity in moments of greater turmoil in the markets, producing a reaction that affects the less reliable entities first, on. But if the Obama Government, decided to rely on the Federal Reserve to give significant powers for the regulation of the financial system it is because it has been considered that the advantages it brought the rigging far outweigh its disadvantages. One of the main advantages conferred on the integration of functions into a single body is the accelerate the ability to react to crisis situations. Moreover, the Fed in its monetary policy decisions, will take from now on more, more careful about the impact on the management of the risks of the financial sector. In this sense, the Monetary Authority is probably less willing to maintain the interest rate of reference in their minimum for much longer so as not to allow the generation of new bubbles in the prices of financial assets. Another point in favour of allowing the Fed to have a greater commitment with regard to the regulation of the financial system, has to do with what who knows, who knows banks. Do you mean this? The crisis generated a precedent in relation to the actions of the Fed. The Federal Reserve came to the rescue of the financial system with large injections of liquidity and salvages joint with the US Treasury.
This has generated moral hazard problems that increase the preferences of the financial institutions by greater risk positions for the future than recommended. It is why the incentive for the Fed is to perform a comprehensive supervision and regulation of the financial system in such a way to avoid that the same take positions, excessive risks. When the new structure for regulation and oversight of the U.S. financial system is not yet defined, the ability of the Fed is putting into doubt. The Government proposal has positive and negative aspects. Do this will help ensure the? the American financial system stability or the foundations of the new crisis will be sitting? Horacio Pozzo investment independent La history may show that the Fed had helped avoid a great depression in 2008, but the radical steps taken along the way make it more vulnerable politically than it has been in decades. During its 96-year history, the United States Federal Reserve (Fed) has been pierced by a handful of moments of transformation.The current one is one of them, this is the time that individual investors should take to achieve financial independence. Paola Pecora here tells us that more than 4000 Latin American investment options because they are taking advantage. Do not waste more time and learn how to invest and become a PREMIUM investor now.