Wall Street Journal on financial regulatory reform programme misgivings

The Obama administration's financial regulatory reform programme 17 official, if reform programmes are adopted and implemented, the United States financial ecology will be changed. In this respect, the Wall Street Journal in support of the many doubts exist.

United States several Exchange Group in the first statement after the announcement of the proposal. New York, Euronext CEO Duncan · Denis Orr said that the current regulatory system is outdated, the Obama administration to strengthen financial supervision and help to restore investors ' confidence in the financial system in the United States. In his view, the regulatory reform must be to protect investors impregnated regulatory loopholes, enhance market transparency, and should encourage innovation.

NASDAQ-OMX Group CEO Robert · Greg Neufeld support strengthening of financial derivatives and over-the-counter market supervision, he believes that this will help to improve the transparency of the market. But he is against over-regulation, emphasizes regulatory efficiency and effectiveness.

Due to the financial crisis, accepted the Government's aid, most financial enterprises stand to be cautious. Morgan Stanley has released a short statement in support of the Government's regulatory reform. In the 17 day return of government relief funds of Goldman Sachs, JP Morgan, and other financial institutions are not neutral.

The original is not in government regulation of hedge funds, private equity, venture capital investment funds that have been included in the list, these funds regulation with regard to the Government's new mood is very complex. "Whether hedge funds or private equity funds, no one is willing to accept the Government's regulatory, both from a business model, or from the actual operation, the supervision means higher costs, but this is a reality of having to accept the" one in New York in the hedge fund industry insiders told reporters that "we need now is Government gives more details on what scale Fund registration, each transaction you need to record. From the perspective of the entire financial sector, strengthen supervision can make market run more smoothly, but to a specific operation, the Government is to monitor to what extent will eventually reach a compromise, now there are variables. ”

Has been working for United States Federal Deposit Insurance Corporation's Len Nayak said that Obama's economic team is concerned about the economy and the macro level, such as how to address the systemic risk, how to monitor financial firms and markets, to avoid repeat of financial crisis. He believes the new deal still to many practical problems, such as lack of strategy for the financial system for the systematic risk of personal handling, burdensome bureaucracy and cannot prevent similar financial crisis from happening again.

Many analysts believe that the Government's regulatory scheme would affect the financial enterprise's profitability. Roche securities company banking del analyst Richard · bowei believes that new regulatory scheme is too complicated, too strict. For example, requiring financial enterprises increase the reserve ratio, this reduces the efficiency in the use of funds, thus affecting the company's profitability.