The U.S. Finacial Supervision Reform And Its Implication For China In The Era Of Post Financial Crsis

Since the 2007 subprime crisis, the U.S. federal government is acutely aware of the shortcomings of its financial regulatory system. In order to avoid recurrence of similar crises, the U.S. federal government has conducted the largest-ever reform in the U.S. financial regulatory system since the Great Depression of the 1930s. On July 21st 2010, Obama signed the "2010 Wall Street Reform and Consumer Protection Act", or "Dodd-Frank bill". As United States has the most developed financial sector and the most active financial innovation in the world, its financial regulatory reform will lead the trend in globally financial regulatory reform development and impose a far-reaching impact to a great extent. Therefore, this article outlines the history of the U.S. financial regulatory developments and explains in detail the context, content and associated impacts of the U.S. financial regulatory reform.Judging from the U.S. financial regulation development, virtually every economic crisis or large-scale financial crisis is followed by financial regulatory reform, introducing the corresponding bill and playing an active role in the U.S. financial industry and even the overall economic performance for some time. The subprime mortgage crisis was no exception, because deregulation and obsolete institutional regulatory model caused regulatory vacuum that led to the subprime mortgage crisis. Based on this fact, the federal government has formulated the relevant contents of the bill, including integration of the U.S. financial regulatory agencies, the Federal Reserve becoming the supreme body of the U.S. financial regulatory system, strengthening the bank's capital requirements, filling the supervision of credit rating agencies, strengthening financial consumers and investor protection, increasing supervision of financial derivatives, and including supervision of hedge funds, etc. This bill will have a huge impact on the U.S. financial regulatory system itself, making its regulation more responsive to the current U.S. financial industry development. It will also play a great legal protection for the U.S. financial system to get out of the quagmire of the subprime crisis and restore healthy development. And it will also serve a very good reference for the countries that will gradually conduct regulatory reform. As China's financial market is not completely open, it's less affected by the spread of the subprime mortgage crisis. However, we should clearly realize that without complete financial regulatory system, China is likely to face a similar crisis in the future. With today's most developed financial markets, the U.S. in many cases should be used as the template of China's financial market development. Especially the U.S. government's financial regulatory reform taken after the subprime mortgage crisis, has played a very good reference for China's future reform of the financial regulatory system. Based on this, the article outlines the U.S. financial regulatory system, illustrates the U.S. financial regulatory reform after the subprime mortgage crisis and, by further our understanding of China's financial supervision course and combining with national conditions, provides China's financial regulatory reform path. This is the purpose and significance of writing this article.This article is divided into five parts: The first part is to illustrate the concept of financial regulation, objectives, and the theory of financial. Through the basic and clear knowledge of financial regulation, we can have a better understanding of the changes in U.S. financial regulation and reform.The second part is about the U.S. financial regulatory development, including the major changes and the impact of significant reforms on the financial system from the 18th century to current sub-prime crisis.The third part is about the U.S. financial regulatory system after the subprime mortgage crisis, illustrateing the background of the subprime crisis, financial regulation constitutes and financial supervision defects.The fourth part is about the U.S. financial regulatory reform. It mainly describes U.S. financial regulatory reform and its relative effects on financial regulatory agencies, the U.S. financial sector and financial regulatory reforms in other countries.Part V is to discuss the enlightenment of U.S. financial regulatory reform. China should further improvement in China's financial supervision to ensure sound development of financial industry by learning from the U.S. financial regulatory reform based on our national conditions.