7.13.2009 SEC Commissioner Troy Paredes spoke of the current state of the economy and the Obama Administration’s proposals to regulate systemic risk. The Commissioner voiced his concern over the systemic risk regulator’s authority and whether the framework for regulation will be flexible enough for the challenges the regulator will face. The Commissioner does think that the regulator’s authority must be circumscribed and defined in advance with clear guidelines and parameters to constrain the regulator. Commissioner Paredes continues to remain concerned over whether the regulator will be too precautionary, which could result in a prophylactic regulatory strategy that is unnecessary and burdensome.
Click http://www.sec.gov/news/speech/2009/spch071309tap.htm to access Commissioner Paredes’ full remarks.