Bernanke frets about bank regulations (general)

[Beastmaster]

Not directly related to the ban.

http://news.yahoo.com/s/ap/20061016/ap_on_bi_ge/bernanke

[Sniper]

When the Federal Reserve Board chairman says that the burden of regulations placed on the banks should be reduced... that can only be a good thing...

Stay tuned!

[adios]

I agree with Sniper's assessment btw. From the article:

Federal Reserve Chairman Ben Bernanke said Monday that bank regulators should search for ways to reduce regulatory burdens imposed on the financial system in the government's efforts to battle terrorist financing and money laundering.

"Deterring and identifying misuse of the financial system, as important as that is, should not be so onerous that it stifles innovation ... or reduces the international competitiveness of U.S. banks," Bernanke said in remarks prepared for the annual conventions of two banking groups.

My take is that Bernanke is well aware of the recent passage of the UIGE law and is paving the way, so to speak, for regulations that don't add a lot of costs to banks in complying with the new law. Of course the new law does add regulatory burdens to the financial system which flies in the face of Bernanke's statement. So my impression is that Bernanke wants to express the "downside" and the potential risks with implementing new requlations for UIGE compliance. Who knows a debate might ensue as to how much money laundering and terrorist activity is funded by gambling on the internet.

[Sniper]

fwiw, For those not following along too closely... The person that the gov't just gave 270 days to come up with regulations for the banks, just said that he believes the burden of bank regulations in this area should be reduced...

A link to this thread should be added to the sticky.

[adios]

[ QUOTE ]
fwiw, For those not following along too closely... The person that the gov't just gave 270 days to come up with regulations for the banks, just said that he believes the burden of bank regulations in this area should be reduced...

A link to this thread should be added to the sticky.

[/ QUOTE ]

Right and reading between the lines, the person given the task of coming up with the regulations isn't convinced that gambling on the internet is a major front for the war on terror. I think this is very encouraging.

[Jeffage]

This is great news - this guy has major stroke and seemingly doesn't give a damn about this issue or want to expose banks with another regulatory burden. Here's hoping this is what it seems.

Jeff

[MLSchaff]

Best news to come out about this whole mess since it began. When it comes to how this bill will effect all of us, no one has more power than Bernanke. And apparently he has his priorities right when it comes to thinking the banking system should be concerned with making sure the economy is working and not going on wild goose chases for terrorist money that likely doesn't even exist.

[Zele]

I /images/graemlins/heart.gif independent central banks.

(Though even if Bernanke is dead-set against any real anti-igaming regs, we still have Justice to worry about. But still these comments are very positive.)

[Wake up CALL]

As far as the article goes it is not een remotely related to the subject at hand. He addresses the Bank Secrecy Act, I think people here are getting overly excited and optimistic about both his point of view and any power he has to make the regulations any less onerous than Congress outlines.

[Uglyowl]

The regulatory burden placed on financial institutions was already becoming very difficult to deal with pre UIGEA.

One must realize that the regulatory difference between a small community bank and Bank of America is only a small fraction compared to the difference in asset size.

There are many financial institutions struggling just to keep up with the "war on terror".

[MLSchaff]

Yes, he addresses the Bank Security Act rather than the UIGEA, but the point remains the same and applies equally to both.

[Uglyowl]

[ QUOTE ]
As far as the article goes it is not een remotely related to the subject at hand. He addresses the Bank Secrecy Act, I think people here are getting overly excited and optimistic about both his point of view and any power he has to make the regulations any less onerous than Congress outlines.

[/ QUOTE ]

The same bank employees who dedicate time to the BSA would be working on restricting gambling transactions most likely. These employees tend to be on the higher end of the pay scale and their is a finite source of knowledgable people in this area.

Still not sure how this will play out, depends how the government will respond to financial institutions putting up a stink.

[Keyser.]

Completely off topic, but has everyone seen this sweet video spoof about Bernanke getting the Fed Chair job over this Columbia dude?

http://www.youtube.com/watch?v=3u2qRXb4xCU

Lots of dorky econ humor in there.

[Uglyowl]

[ QUOTE ]
Completely off topic, but has everyone seen this sweet video spoof about Bernanke getting the Fed Chair job over this Columbia dude?

http://www.youtube.com/watch?v=3u2qRXb4xCU

Lots of dorky econ humor in there.

[/ QUOTE ]

TY for posting, never seen this.

[Sniper]

[ QUOTE ]
As far as the article goes it is not een remotely related to the subject at hand. He addresses the Bank Secrecy Act, I think people here are getting overly excited and optimistic about both his point of view and any power he has to make the regulations any less onerous than Congress outlines.

[/ QUOTE ]

It's not about getting excited or optimistic... its about paying attention to what is to happen... and this is a significant piece of that puzzle.

Expect more statements from Banks ands the Fed... and if you want want to stay on top of what is going to happen, you will pay attention to them!

[adios]

[ QUOTE ]
As far as the article goes it is not een remotely related to the subject at hand. He addresses the Bank Secrecy Act, I think people here are getting overly excited and optimistic about both his point of view and any power he has to make the regulations any less onerous than Congress outlines.

[/ QUOTE ]

Clearly the Federal Reserve will gave a key role in determining the regulations if not the key role. Happy days are here again? Not necessarily but encouraging statement by Bernanke? Yeah I think so.