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GAO recommends considering ways to improve the regulatory structure for financial services, especially the oversight of complex, internationally active firms. Options include consolidating within regulatory areas and creating an entity primarily to oversee complex, internationally active firms, while leaving the rest of the regulatory structure in place.
GAO found that while the financial services industry and the international regulatory framework have changed the regulatory structure for overseeing the U.S. financial services industry has not. Although a number of proposals for changing the U.S. regulatory system have been put forth, the United States has chosen not to consolidate its regulatory structure.
GAO states that the U.S. regulatory structure worked well on some levels but not on others. Some have questioned whether a fragmented regulatory system is appropriate in today’s environment, particularly with large, complex firms managing their risks on a consolidated basis.