By Patrick Rucker and Rachelle Younglai Thu Jul 24, 10:52 AM ET WASHINGTON (Reuters) - The head of the Securities and Exchange Commission said on Thursday that his agency should oversee investment banks under a new regulatory regime aimed at averting another credit crisis.But at a congressional hearing on how to modernize a regulatory structure that has not kept pace with dramatic shifts in the financial system, a top Federal Reserve official stressed that the central bank must directly supervise all firms that borrow from the Fed.
Both SEC Chairman Christopher Cox and Federal Reserve Bank of New York President Timothy Geithner said that the current patchwork of regulatory agencies, much of which dates back to the Great Depression of the 1930s, deserved part of the blame for the year-long financial market turmoil.
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