Ananlysis On Reformation Of American Financial Supervision Architecture During Subprime Crisis

The formation and improvement of financial supervision legal system is the legal basis of national financial regulators. It need a certain degree of institutional settings and institutional arrangements to ensure the financial supervision law can be effectively implemented. That is, the financial supervision. It includings the set of financial regulator and its statutory regulatory responsibilities, supervision methods, procedures and the the relationship between the regulatory authorities and the supervised entities of a country (region). The high-risk and high-return characteristics of financial markets decided that operators may be easy to manipulate Market, make illegal profit and do harm to interests of shareholders and the investors by using their own advantages and convenience of agency clients in the absence of effective monitoring system. Thus to establish a rational and effective system of financial supervision is of great importance in practice.Since the 20th century, the United States experienced four major financial crisis. With each of the financial crisis broke out, the U.S. financial supervision system reformed constantly and improved gradually. After the outbreak of the subprime crisis, as an opportunity, the United States made major efforts to reform financial supervision aim at its serious shortcomings exposed to supervising overlap and vacancy. As the U.S. subprime mortgage crisis-driven products, the Framework of modern financial regulatory reform blueprint announced at March 31,2008,reflects the introspection to the defect of current financial supervision system and the direction of future financial regulatory reform. June 17,2009, the U.S. released the White Paper on financial regulatory reform. It basically inherited the spirit of reform blueprint, and became the first step in a comprehensive reform of financial supervision. After that, House of Representatives and the Senate, each of them submitted a detailed financial supervision reform bill. It means that the financial supervision reform made a major step forward. Based On the base of the Senate's bill, Dodd-Frank Wall Street Reform and Consumer Protection Act2010,the largest and Most far-reaching U.S. financial supervision reform bill since the Great Depression was promulgated at July 21,2010, marked the end of the "deregulation" in America.From this point of view the sub-prime crises, with the current boundaries between traditional markets become increasingly diluted, the crisis is always integrated,so that rely solely on the strength of a country is difficult to completely resolve the crisis.Therefor, China should actively participate in international, regional and bilateral and other multi-level cooperation in financial supervision to share information, learn from each supervisory experience. Financial supervision system is the core of the financial legal system. Straighten out the financial regulatory system is the protection of the healthy development of financial markets. China is not yet fully mature financial market countries, the regulatory system, concepts, specific rule-making, regulatory and other goals, there are still many shortcomings, so there is an urgent need to improve China's financial supervision system.Moreover,the scale of China's national economic development and financial market development status made financial institutions have a strong creative impulse. Some financial institutions have obtained the initial benefits of product innovation, however, the U.S. subprime mortgage crisis and its serious consequences and that our regulators hesitates, how to regulate financial innovation and supervision in order to maintain a balance between innovation and passion for financial institutions to promote economic development but not so lead to economic crisis, is still an urgent problem await to be solved. A country's financial market is not isolated, so reform and improve China's financial supervision system needs to draw on the financial sector the successful experience of developed countries. As a representative country with mature financial market, the United States's financial regulatory system focused on the development and reform reflects the needs of modern financial markets, and it is an important reference to the financial supervision of China. The history of the U.S. financial supervision system, Reveals the balance of its financial market innovation through legislation and legal regulations in order to maintain the market transaction security, the concept of economic efficiency and effective measures. Hope that it may have implications for our financial market innovations and legislation that has begun already or will carry out in future.To the background of subprime crisis, this paper attempt to do up and conclude the formation and development of U.S. financial supervision system, especially the superivision reform initiatives after this subprime crisis. Key based on the adjustment and reform the U.S. made for its loopholes and drawbacks of the financial supervision system that has exposed during the subprime crisis, to summarize the largest reform of U.S. financial supervision system in its history and the rules it reflected. And on this basis, the paper will sum up the problems existed in China's financial market supervision system, and analysis the establishment and development of China's financial supervision system. This article will illustrate how to learn from the U.S. subprime mortgage crisis in the post-reform initiatives to improve and promote China's securities regulatory system, combined the philosophy and regulation reflect by these initiatives with the Chinese localization, proposed suggestion about China's choice of financial regulatory reform. By filtering the U.S. regulatory reform measures after the crisis, to come to our policy recommendations of establishing a rational and efficient supervision system, and to solve the existing problems in China's financial regulatory system, that's the key issues to be solved by this paper.