Fed Would Be Independent Risk Regulator: Vice Chair

Law360, New York (July 6, 2009, 12:00 AM EDT) -- The Federal Reserve's second in command told members of Congress that adding the role of systemic risk regulator to the central bank's brief, as proposed by the Obama administration in its financial regulatory system overhaul, would not constrict its independence in setting monetary policy or subject it to added political pressure.

Donald L. Kohn, the vice chairman of the Fed's Board of Governors, told skeptical lawmakers at a hearing of the House Financial Services subcommittee on domestic monetary policy and technology that systemic risk regulatory authority...
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