U.S. financial regulation bill which will bring global.

<P> United States Senate May 20 passed a new Financial Supervision Act. .Obama said the bill will immediately start the integration process both houses, for the July 4 (Independence Day) to complete the merger, to build a unified legal system of financial regulatory reform, as the leading global financial regulatory system to lay the basis of domestic law. .</ P> <P> new system of financial regulation bill highlight the two major regulators, the business scope of financial institutions and business aspects of these two full-scale monitoring. .Act claim rights by strengthening the regulatory authorities to limit high-risk financial institutions in financial services, prohibiting commercial banks to deal directly with high-risk financial derivatives, etc.; the same time, limit the scale of operation of financial institutions to break the financial institution can not be too large .closure of the fetters, the target system from the micro-transactions, and prevent the recurrence of financial crisis. .</ P> <P> end of last year, the U.S. House of Representatives passed the financial regulation bill, the focus on "macro-credit order maintenance", by giving the Federal Reserve system, a package of financial regulatory authority, to ensure that the central bank led the banking, securities, insurance and other financial regulation, .goal is to build international coordination type of the financial regulatory system to ensure that the unique U.S. international power. .</ P> <P> U.S. Senate and House bills to achieve the merger, from both macro and micro level, building up the financial system covering the whole regulatory system, is considered to be 30 years since the last century, since the financial reform, the most comprehensive .and unified legal system of financial regulation. .</ P> <P> change the U.S. financial industry structure </ P> <P> 2010 年 1 month, Obama issued following the June 2009 to strengthen the financial system stable regulatory bill, once again proposed to prevent the crisis .another outbreak of the financial regulation bill, known as the "New Financial Regulation Act." .20 in the Senate this month passed a bill that is modeled on this. .The basic idea of the bill from the Obama campaign general counsel of the economy, former Federal Reserve Chairman Paul Volcker, is also known as "Walker rules." .</ P> <P> its specific content generally consists of three rules: first, prohibiting commercial banks to engage in hedge funds, private equity investment, equity participation and other business, the implementation of a de facto "separate operation" return; Second, prohibiting commercial .nothing to do with the customer in the bank stocks, bonds (excluding bonds, government bonds and local bonds), and related financial derivatives and other internal transactions; Third, during the restructuring of financial institutions mergers and acquisitions, the acquisition of related liabilities shall not exceed the financial institutions .10% of total liabilities. .</ P> <P> first two rules of business of bank regulation; the third rule, called the Bank of scale control, that fact does not recognize the existence of giant financial institutions. .U.S. House of Representatives passed in December last year, financial regulation bill, or to "a giant financial institutions" is the prerequisite for the survival reflects the bankruptcy of large financial institutions on the macro-financial system stability may be a tremendous impact concerns. .Walker rejected the rule in fact the existence of the giant banking group. .</ P> <P> but the reality is that the U.S. financial industry, the financial crisis, a large U.S. investment bank or a giant bank merger, or to apply to "Bank Group", almost without exception, turned into the central bank lender of last resort available .Bank Group support to form a giant banking group led by "American characteristics" of the financial industry structure. .Walker rules by denying the existence of the giant banking group conditions tantamount to completely change the structure of the U.S. financial industry. .</ P> <P> in the financial liberalization process, the giant financial institution, with its enormous size, access to the pursuit of the conditions of high monopoly profits. .Its executives, financial elites can use monopoly power to reap excessive compensation. .When the financial crisis, these financial institutions but also to deter the use of the status of the financial system, easy access to government financial assistance, serious embezzlement, squandering the national taxes, adding to the national burden, causing widespread social discontent. ."Walker rules" can be described to meet the public, for Obama to gain political popularity, save political face-saving reform measures. .</ P> <P> of the global financial regulatory reform </ P> <P> seventies and eighties of last century, with the development of financial markets, banks face a strict separation of regulatory restrictions, that 90's of last century, .In the United States to form a "bank of recession." .Therefore, the development of new financial services other than deposit and lending business to commercial banks to obtain a wider range of profit opportunities, became the basic idea of financial reform. .U.S. financial liberalization, it is also relaxed by periodically "Interest Rate", "business control" began to start. .As a means of safeguarding the financial system, when the U.S. financial reform allows banks to engage in moderate-risk business at the same time, as a buffer means, government regulators require banks to raise equity capital ratio, to maintain the integrity of the bank. .Construction of the two combined financial security system. .The financial liberalization reforms in the banking business from the traditional deposit and lending business, development of a comprehensive financial services to provide integrated services. .</ P> <P> After the Cold War, a unified global market, increased competition in the financial world as the theme of the times. .As a major U.S. competitors, European financial institutions are mostly to concurrently operate securities and insurance business, integrated banking group with strong international competitiveness. .In this context, the United States If you want to participate in the global financial competition, we must relax the control of the business scope of banks, as banks expand the full range of financial services conditions. .It is in this context, the United States in 1933 to develop a "separate operation" mode, gradually reform, particularly in the new banking law in 1999 and further to allow the U.S. "financial holding company" established "separate management system" has been .a more thorough reform. .The latter half of the 1980s, "are great, and that they can not bankrupt" philosophy up as a trend, developed various types of giant multinational financial institutions to keep development in the financial system plays an important role. .U.S. and European banks, securities, insurance groups and the gradual integration into the giant of the road. .</ P> <P> Although the financial giant of global competition can avoid bankruptcy, but also to financial operators to provide "a new rent-seeking opportunities," the financial system through deterrence, to obtain a monopoly over power .derived as a political issue. .From the August 2007 subprime crisis to the 2008 financial crisis, and even the current European sovereign debt crisis, the giant of the banking group, but oligarchy of the rapid development of the social rebellion caused by the developed countries, encroaching upon the stability of the regime. .</ P> <P> In this regard, G20 summit from the perspective of the international financial system is stable, an important advocate for the implementation of particular international financial institutions, regulatory harmonization. .The new U.S. financial regulatory reform bill can be said to adapt to the global financial trends, to meet the aspirations of the financial regulatory reform, multi-frame, or will the global financial regulatory reform have an important impact. .</ P> <P> how the international coordination of concern </ P> <P> present, the financial system from the point of view on a large scale and complex ways to regulate financial transactions, there are basically two kinds of tendencies. .</ P> <P> One is the existence of giant financial institutions as a precondition, and the specific technology, to consider the design of the regulatory regime. .Such as the U.S. House of Representatives passed the financial reform bill, to emphasize the stability of the financial system from the point of view of the giant financial institutions regulation, and through the strengthening of international coordination, operational flaws in the event of their time enough to suppress the direct impact of the global extent of the real economy. .</ P> <P> the second is in the financial system, the financial regulatory authorities in principle, advocated building, especially the idea of the super financial institutions. .Typical is the "Walker rules", but also the U.S. Senate passed this new financial regulation bill of the core idea, that by limiting banks to engage in high-risk investments and transactions, maintaining a conservative settlement system, financial intermediaries and other traditional functions of commercial banks .to ensure that "not to create" super-banking group, to avoid the formation of the financial system, "too, that they can not bankrupt" deterrent. .As a result, the financial security mechanism, can reduce the "financial security umbrella" of the range and improve the efficiency of the financial system to maintain stability. .</ P> <P> first approach, while the business activities of financial institutions in the least, but it can also contribute to the expansion of giant financial institutions, so that the expansion of the financial system's security umbrella, the financial system maintenance costs, "too .reduce the balance of regulation on financial markets, shrinking liquidity shortage forecast, on the real economy will be uncertain what effect. to the United States as the primary source of the financial crisis, the excessive expansion of investment banking, but it will be business regulation bill .Bank under strict control of the column, whether the "market-based financial system risks" have effective control is uncertain. from the "maintenance of credit order" point of view, the effect there is great doubt. </ P> < .P> Therefore, not only on Wall Street to actively resist, the EU has said it would not apply the U.S. program, Japan is closely watching the U.S. program, but not bankrupt, "the deterrence issue can not be resolved. .The second approach is conservative therapy, limited the banks in the hands and feet at the same time, and not put forward conditions to ensure the profitability of banks, especially not proposed how to advance international coordination to ensure the financial supervision of the international equalization. .</ P> <P> In addition, financial sector reform also caused the loss of competitiveness concerns. .Conservative, and international promotion. .</ P> <P> In fact, the United States to use international rules to build the leading domestic law precedents. .Back in World War II just ended, the US-led construction of the Bretton Woods system, there are still affected. .Which the "golden dollar exchange standard" is based on the formation of the domestic law of the United States. .Bretton Woods Agreement provided only to gold as the anchor of a fixed exchange rate system, and provides for the July 1, 1944 the dollar price of gold build links between the two, and does not provide "official gold and the dollar parity against other" .. .The United States is based on domestic law enacted in 1934, "Gold Reserve Act" and the ban of gold held by residents, and 70% of the global monopoly of gold, forming a "gold of the official trading" mechanism, was a "dollar or gold" .dominance. .</ P> <P> U.S. financial crisis, global financial competition has not fundamentally changed, New York remains the financial capital of the world's largest market. .For Japanese and European financial institutions, global competition, inevitably, to enter the New York market, and accept control of the domestic law of the United States, or competition authority is tantamount to self-abandon. .</ P> <P> Clearly, the U.S. legal system of financial regulation has a considerable extent, the meaning of international rules. .Based on the "Volcker rule" in the new financial regulation bill, how to expand international coordination, the formation of generally accepted and effective international financial regulatory system is a concern. .(The author is the Chinese Institute of Contemporary International Relations, Globalization Research Center) </ P>.