Key Points Of The U.S.

President’s Proposed Plan For Regulatory Reform On The

U.S Financial System

I am writing to summarize the President’s proposed plan for regulatory reform on

the U.S financial system. This is a monumental factor for us to consider in my
thesis in the New Paradigm for the United States of America and ultimately the way
QFA will manage money. I like to thank Mr. George Soros for his contribution to
opening my eyes to possibilities that things will not revert back to the mean and
that statistical modeling is obsolete. I therefore propose a new way of managing
money will emerge. Consider this new way a “physiological reflexivity model” that
incorporates multiple asset classes will emerge. We are working diligently on
staying ahead of the curve to serve our clients.

Consider the President’s following key points:

1) Creates Financial Services Oversight Council to guide regulators’ activities.

2) Financial firms big enough to be a risk to financial system would be heavily
regulated by the Federal Reserve.
3) Allows Fed to collect reports from U.S financial firms that meet certain
minimum size thresholds’.
4) Says Treasury will re-examine capital standards for banks and holding firms.
5) Tells regulators to issue guidelines on executive pay.
6) Creates National Bank Supervisor, and kills Office of Thrift Supervision.
7) Huge funds, private-equity funds and venture-capital funds to register with
SEC.
8) Urges SEC to stem runs on money-market mutual funds.
9) Beefs up oversight of insurance by creating office in Treasury to coordinate
information and policy.
10) Over-the-counter derivatives, asset-backed securities in regulatory framework.
11) Gives Fed more power over infrastructure that governs these markets, such as
pay and settlement systems.
12) Harmonizes powers and authority of SEC and CFTC to avoid conflicting rules.
13) Requires certain loan originators should retain some economic interest in
securitized products.
14) Urges SEC to strengthen credit-rating firm regulation.
15) Creates Consumer Financial Protection Agency, with authority over consumer-
oriented products.
16) Requires nonbinding shareholder votes on executive pay packages.
17) Requires certain employers to offer an ‘automatic IRA plan’ for retirement.
18) Creates a mechanism that allows the government to take over an unwind large,
failing financial institutions.
19) FDIC to act as conservator or receiver, except with broker dealers or
securities firms, then SEC takes over.
20) Amends Fed’s lending powers to get Treasury secretary’s approval.
21) Rating agency model, still unchanged. (NYT)

Disclosures_______________________________________________________________________
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The source of this summary is from the June 18th edition of the Wall Street
Journal. Furthermore, this report does not provide individually tailored
investment advice. It has been prepared without regard to the individual financial
circumstances and objectives of the person who received it. The securities
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