As part of an evolving federal effort to monitor and address systemic risk, the Treasury Department has convened a team to examine potential long-term threats to the nation's economic stability
Government sources told the Washington Post that the group, known as Plan C, is looking closely at community and regional banks, the continuing high rate of delinquencies and foreclosures in the housing lending market, and the commercial real estate market.
"We are continually examining different scenarios going forward; that's just prudent planning," Treasury spokesman Andrew Williams told the Post.
The informal group of policy experts is looking both at emerging problems and potential solutions, the paper reported. The effort is seen as a model for a future government body empowered to examine larger threats to the economy, and congress is currently considering its options.
The Obama administration has made such an office a major priority, though disagreements remain over whether the Federal Reserve or some other agency should be in charge. If the Federal Reserve gets the nod, it may have to give up some other responsibilities, including consumer protection oversight, legislators say.
In addition, the Federal Deposit Insurance Corp. and the Securities and Exchange Commission, not wishing to be excluded, have said they prefer an interagency council of regulators to monitor risk.
Government sources told the Washington Post that the group, known as Plan C, is looking closely at community and regional banks, the continuing high rate of delinquencies and foreclosures in the housing lending market, and the commercial real estate market.
"We are continually examining different scenarios going forward; that's just prudent planning," Treasury spokesman Andrew Williams told the Post.
The informal group of policy experts is looking both at emerging problems and potential solutions, the paper reported. The effort is seen as a model for a future government body empowered to examine larger threats to the economy, and congress is currently considering its options.
The Obama administration has made such an office a major priority, though disagreements remain over whether the Federal Reserve or some other agency should be in charge. If the Federal Reserve gets the nod, it may have to give up some other responsibilities, including consumer protection oversight, legislators say.
In addition, the Federal Deposit Insurance Corp. and the Securities and Exchange Commission, not wishing to be excluded, have said they prefer an interagency council of regulators to monitor risk.
published July 8, 2009, 0 Comments
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