The U.S. Financial Supervision Reform In Sub-prime Crisis And Its Implication For China

"Subprime Mortgage Crisis" caused the United States reflection for its financial regulatory system and the concept of its supervision。Currently, the United States's financial regulatory system is overlap, regulatory gaps and regulatory issues such as out of control. Further deterioration of the financial crisis in the U.S. regulatory system exposed the inherent flaws. In March 2008 the U.S. Treasury Department announced a "modern blueprint for financial regulatory reform framework," a detailed description of the U.S. financial regulatory framework for the reform of the short-term goals, medium-term goals and long-term goals and means, and a reflection of the concept of the U.S. financial regulatory changes. In view of this, I choose the U.S. financial regulatory reform as a master's thesis research, an attempt by development of the theory of financial regulation, the U.S. financial regulatory system changes, the crisis has exposed the problems and future trends in analysis of the reform, we can learn the experience and reference by summed up the financial regulatory reform in the United States. Based on the research, I would like to provide recommendations for China's financial regulatory system reform and improvement.The main point is that: the world does not have a uniform, optimal financial regulatory system, any system of financial supervision is in accordance with its own level of financial development and the characteristics of the political system of choice. Although the financial regulatory system to improve the effectiveness of financial supervision is important, but it will provide a good protection only for the effective supervision of the financial system, supervision and management system itself will not ensure effective financial supervision. Strengthening of financial supervision is the ability and effectiveness of financial supervision and key objective of reform. In order to reduce the risk of financial reform, the reform process needed to be balanced, step-by-step, at same time.Thesis is divided into five parts, the first part of the article sorts out the meaning of financial regulation, we can see that development of the theory of financial regulation to follow a crisis-oriented line through financial supervision and management theory from the historical changes and development trend, the constant crisis and the outbreak of crisis is deepening awareness and promoted the theory of the evolution of financial regulation and change.This crisis-oriented system, after the performance of financial supervision, shows a lack of flexibility in the forward-looking flaws. The approach of exploring and promoting the establishment of the financial system taking the initiative to prevent and defuse financial risks of the institutional arrangements, not only from the perspective of external forces to intervene to determine the strategy for financial supervision in order to achieve security and stability of the financial system, efficiency and effectiveness of the balance of various objectives and coordination, is the future trend.The second part of the paper, I focused on the formation of the financial regulatory system from the United States and the existing framework. The United States has been advocating the "separation of powers," the spirit of the United States As a nation of immigrants, advocating freedom and democracy, emphasizing playing fairly, the concentration of political power and private economic power concentrated fear. The advantages of such a regulatory approach is: First, have a detached outside competitors in the market regulatory authority, would be fair, objective and strictly play the role of monitoring functions; Second, all kinds of comprehensive and specialized range of laws and regulations, regulatory advantages of specialization highlight and enhance the authority of the regulatory. The regulatory regime made huge contribution to the development and prosperity of the U.S. financial industry a solid foundation for the development of the U.S. economy can not be left unrecognized. In the third part, I take the "Subprime Mortgage Crisis" as the background, an analysis of defects in the financial regulatory system, which can be found financial regulatory system in the United States. During the past years, since financial instruments were relatively few, it were easy to control and manage, the system could play a very good role as guard against the risk. However, in today's rapidly changing financial innovation, this regulatory approach has been behind the changes in financial markets, with the globalization of financial development and integrated management of financial institutions continues to advance, the U.S. regulatory system increase more and more defects. The shortcomings of this mode of regulation in the "Subprime Mortgage Crisis " are fully exposed: the coordination among the various regulatory bodies was poor, vulnerable and appears regulatory vacuum; among the various regulatory bodies, difficulty of reunification and friction are inevitable; the whole, large institutions, high regulatory costs; mixed operation system for the implementation of sub-regulation, prone to overlap monitoring.For the fourth part of my research, the analysis of "modern blueprint for the reform of the regulatory framework" the United States in 2008 and a new reform of financial supervision in 2009 and the impact of the program, can be found, the U.S. the most prominent feature of the reform is to seek the establishment of a unified integrated system which will be capable to maintain a high degree of vigilance of the function-oriented regulatory system. Through the establishment of a unified regulatory system, supervising the basis of assets from the vision of the federal regulation, from its source to ensure that securitization is highly dependent on the developed market economies and stable operation of the health and to change the system without the risk of agencies responsible for the situation effectively.In the last part, I concentrated on what lessons we can learn from the U.S. financial regulatory reform. From the current situation of China's financial system, the same problems can be seen that China's financial regulatory system also has the same feature with the United States, the management of the financial sector failures in the supervision of the remaining regulatory issues such as inefficient. The main direction of U.S. financial regulation reform can provide some useful enlightenment to us since Chinese integrated financial market is in a transition period. Taking into account that the financial regulatory reform involves many issues, it will be very difficult, I think that the process should be in accordance with the principle of gradual and orderly progress, steady progress. It should be in three steps: First, changes in regulatory philosophy, to improve regulatory efficiency; Secondly, a sound financial supervision and coordination mechanisms; Finally, the establishment of a unified integrated monitoring system.In short, we should reflect on the U.S. financial regulation in the "Subprime Mortgage Crisis" exposed the problem seriously, combined with the reality of China's financial sector development and capacity, to promote the financial reform carefully.