US central bank, SEC deepen bank policing ties

0 Comments | AFP, July, 2008

WASHINGTON (AFP) — The US Federal Reserve and the Securities and Exchange Commission said Monday that they had agreed to deepen ties to better monitor cash-strapped banks which are reeling from a credit crunch.

The closer ties were announced as US lawmakers review possible changes to the regulatory environment that could help avoid a repeat of the credit squeeze and the downfall of another major investment bank like Bear Stearns.

Federal Reserve chairman Ben Bernanke and SEC chairman Christopher Cox have signed a memorandum of understanding between the two powerful agencies to boost information sharing and bank policing.

"The importance of this deepened cooperation is highlighted by the recent stress in the financial markets affecting commercial and...