The Study On The Transformation Of US Financial Regulatory System Atfer Subprime Cirsis

From the late nineteenth Century to the middle twentieth Century, the UnitedStates of America as the most developed country in the world, has thoroughlyreplaced the British and become a new economic center of the world, with a everrising status. However, it is the unite states of America, with so well-developedeconomy and advanced financial management, that witnessed the outbreak of thesubprime mortgage crisis, which brought up the bankrupt of the subprime mortgageinstitutions, the close of investment funds, the turbulence of the stock market directlyleading to violent financial storm, and moreover a major global financial marketliquidity shortage crisis in major global financial market. The subprime crisis to theUnited States and the world has caused so far-reaching impact that it has become aninternational hot issues, many government officials, experts and scholars areexploring the real reason for the outbreak of the subprime mortgage crisis, many ofthem have focused on the American financial supervision system.The United States financial regulatory system has experienced a series ofchanges since the subprime crisis. The US government has published three financialregulatory reform plans after2007, including the Bush government’s blueprint ofmodern financial supervision system in March2008, the Obama administration’sfinancial reform framework in March2009,the financial regulatory reform--a newfoundation in June the same year, which later changed its name to reform andconsumer protection act of Wall Street. The article studies on the theory of financialsupervision, through the elaboration and the research on the reform of Americanfinancial supervision from2008to2010, a elaboration and analysis on the features,defects and significance of reform has been made.Long position and Umbrella Supervision Structure are the significant features ofAmerican financial supervision system. The United States federal and Stategovernments both have financial supervision rights. At the same time, because of thelong period of the fund of the regulatory system, instead of instant change, inevitablythere exists multiple regulators with a same type of business phenomenon, whichformed the" long" regulation, which means an agency is simultaneously undermultiple financial regulatory. The most obvious disadvantage is the different degree of tightness of regulatory policies, and banks can choose whether to register in FederalGovernment, the Federal Deposit Insurance Corporation, or be the member of theFederal Reserve, etc, which resulted in possibilities of regulatory arbitrage, andtrouble for financial stability. At the same time, in1999，the United States Congresspassed the Financial Services Modernization Act, completely lifted the restriction offinancial business. The bill also provides Federal Reserve as general regulators for thebank-holding companies and financial holding company, that is umbrella regulator,and other regulators as functional regulators to auxiliary federal regulation, whicheventually formed the current umbrella financial supervision structure.Two line with multiple heads and umbrella supervision structure obviouslycannot go along with the United States’ current economy and financial development.The United States financial supervision institutions are too big, and permissions areoverlapped, separated supervision and mixed operation has produced theirreconcilable contradiction. Around the subprime mortgage and debt for a variety offinancial derivatives, the traditional supervision is weak, so there is a blind spot of USfinancial supervision, and the financial risk appeared out of control. For these reasons,the United States undertake the reform of financial supervision system in time whichcaused a series of financial regulatory reform measures listed above.The article made a study of a series of financial regulatory reform measures ofUnited States, a conclusion of the direction of financial system reform development,and analysis of the future trend of the improvement, from which it summarizes thepractical significance of American financial regulatory reform and the reference. Andon this basis, the proposal has been put forward to perfect our financial regulationsystem.