Second, set up a new Consumer Financial Protection Bureau under the Federal Reserve Board to supervise financial institutions that provide consumer financial products and services such as credit cards, mortgages and other loans.
Third, bring the OTC derivatives market, which lacked supervision before, into the regulatory vision. Most derivatives must be traded on exchanges through third-party clearing.
Fourth, restrict bank proprietary trading and high-risk derivatives trading. In proprietary trading, banks are allowed to invest in hedge funds and private equity, but the capital scale shall not be higher than 3% of their Tier 1 capital. In derivatives trading, financial institutions are required to split the most risky derivatives trading businesses such as agricultural products swaps, energy swaps and most metal swaps into subsidiaries, but interest rate swaps, foreign exchange swaps and gold and silver swaps can be retained.
Fifth, establish a new bankruptcy liquidation mechanism, which is under the responsibility of the Federal Deposit Insurance Corporation, and order large financial institutions to make their own risk provisions in advance to prevent the bankruptcy of financial institutions from dragging down taxpayers' assistance again.
Sixth, the Fed has been given greater regulatory responsibility, but it will also be subject to stricter supervision. The Government Accountability Office under the US Congress will audit and supervise the emergency loans, low-interest loans and open market transactions issued by the Federal Reserve to banks to implement the interest rate policy.
Seventh, the Federal Reserve will supervise the executive compensation of enterprises to ensure that the executive compensation system will not lead to excessive pursuit of risk. The Fed will provide programmatic guidance instead of making specific rules. Once it is found that the compensation system leads enterprises to pursue high-risk business excessively, the Fed has the right to intervene and stop it.
Cancel precious metal counter trading
The US foreign exchange trading network issued an important notice, saying that after July 20 1 1 5, the US financial regulator cancelled the legality of over-the-counter trading of precious metals, which means that it is illegal to trade gold and silver over the counter.
This ban is based on the Dodd-Frank Act (No.742 (2)) promulgated by the US Congress, which stipulates that American citizens are prohibited from trading all precious metals (including gold and silver) over the counter (OTC) from July 20 1 15. In order to comply with the bill, the US foreign exchange trading network had to stop trading precious metals from 5 pm on July 15. All corresponding open precious metal supports will also be closed. The website advises investors to gradually terminate the trading activities of these commodities in the next month, and all open gold and silver positions will be automatically paid off.