In October, a group representing several different banking and credit union regulators released new guidelines on how to better protect customer identities.
Put simply, in the absence of such incentives, the risk-averse funding that banks thrive on wouldn't be available to allow banks to create sprawling credit portfolios impossible for regulators or investors in the marketplace to assess.
There were plenty of regulators before the credit crunch, but the solution is apparently more regulation.
Ms. CHU: Regulators have been mulling credit card reform, rate and fee reform, for quite some time now.
In addition to their unconvincing experiment with short-selling, regulators have turned on credit-default swaps (CDS), contracts which insure against default.
Moreover, some regulators worry that the credit risk and market risk which banks have traditionally borne is ending up elsewhere in the economy.
Goldman Sachs has been the target of headline seeking politicians and regulators ever since the credit crisis, but their scolding of the investment bank has never amounted to much.
By mid-December, what were termed the White Papers were being delivered to policymakers, looking into subjects including banking, credit ratings, hedge funds and regulators, as well as bailout efforts.
So far, the deal is clearing necessary hurdles with credit ratings agencies, the market and regulators.
This has been an open secret among bankers and regulators since the start of the credit crunch in 2007.
Credit Suisse's Funnell cited the European regulators' association on Monday, instead estimating better-than-expected cuts of 40.0% over the next three years.
Although Li tried to play down the impact of Google's touchy relationship with regulators during a Bloomberg TV interview, Credit Suisse attributed Baidu's growth partly to customers losing confidence in Google's advertising platform.
Oh, AIG is a bit more of a problem, but forbidding them from issuing things like credit default swaps to avoid regulation by the insurance regulators and the insurance regulators forbidding them from insuring financial transactions that are not easily understood and rated would go a long way.
More sophisticated banks have been developing their own credit-risk models for this, and pushing for regulators to accept them as a basis for capital standards.
Our role at the Treasury Department was to support the independent regulators and their efforts with private parties as credit markets were operating under considerable stress, and we believed that certain prudent actions would help to mitigate systemic risk, enhance liquidity, facilitate more orderly markets, and minimize risks to the taxpayers.
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"The more pragmatic approach from regulators is warranted, " said Michael Symonds, credit analyst for financials at Daiwa Capital Markets Europe.
One way to do that, Bush says, is for regulators and firms to agree upon a new standard of credit lending.
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Regulators also hint that it might eventually be necessary to supervise credit hedge funds, now monitored via their brokers.
The regulators are especially worried about trades used by banks or brokerage firms to move bonds off their balance sheets, which would remove the securities from the scrutiny of regulators who are trying to limit the overall surge in domestic credit.
Regulators had focused on firms' ability to operate without unsecured credit for as much as one year, and it was basically assumed that secured credit would always be available, even if at higher rates--a focus that was, in retrospect, inadequate to handle a crisis, Cox said.
And the Public Accounts Committee (at 3.15pm) returns to its hearing on the effectiveness of consumer credit regulation - having berated Wonga and other lenders last week, the regulators, the Office of Fair Trading, and the Financial Services Authority will be in the committee's sights this time.
Credit default swaps (CDSs) are one type of derivative contract, and regulators in the US and EU put them on a faster track to exchange clearing.
Regulators in Switzerland have introduced a new capital regime for UBS and Credit Suisse, the country's two biggest banks, which restricts their total leverage as well as measuring their risk-weighted assets.
Last week, industry regulators announced that the vast majority of financial institutions had recovered from the credit crisis that threatened to kill them just two years ago.
That is why regulators now favour a third idea: the use of banks' own internal credit ratings.
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Banks must notify credit bureaus independently about any changes to a borrower's credit history and aren't required to do so as part of the settlement with regulators.
Both regulators and regulated institutions still yearn for the ability to outsource the tough decisions on credit risk to some certified experts.
Capital One Financial announced settlements with two bank regulators on Wednesday over deceptive marketing practices related to add-on products sold to credit card customers.
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