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Safety and soundness regulation focused on preventing banks from failing, and in practice, regulators typically signed off on just about any practice that resulted in short-term profits for banks, under the hypothesis that more money today meant a lower likelihood of failure tomorrow.
"I fully support enhancing both consumer protection and safety and soundness regulation," Mr. Shelby said.
Bank safety and soundness regulation, which is designed to protect depositors and ultimately the government's deposit insurance funds, is a sensible model to follow.
"The parties to these kinds of contract," he said, "are largely sophisticated financial institutions that would appear to be eminently capable of protecting themselves from fraud and counterparty insolvencies and most of which are already subject to basic safety and soundness regulation under existing banking and securities laws".
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Under our current system of safety-and-soundness regulation, supervisors often focus on the financial conditions of individual institutions in isolation.
Frank told Congress back in 2003: "I do not want the same kind of focus on safety and soundness [in the regulation of Fannie Mae and Freddie Mac] that we have in the Office of Thrift Supervision.
But consumer protection and safety and soundness operate under different regulation regimes, he said.
After all, the Canadian system is considered successful not only because it has fewer banks to regulate, but because regulation is based on the tenets of safety and soundness.
The construction consultant (consultant) serves the lending institution by examining the conceptual design and specifications or engineering soundness and compliance with governmental regulations, and by making a study of cost comparables for similar projects, in addition to a trade-by-trade breakdown.
The construction consultant is hired by the lending institution to examine the conceptual design and specifications or contract documents for engineering soundness and compliance with governmental regulations, and make an assessment of cost comparables for similar projects, in addition to a trade-by-trade breakdown.
Republicans and Wall Street wanted, instead, for consumer protection to be woven into regulation of financial firms' soundness.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com