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-------- Original Message --------
Subject: UN: Regulatory protections under the umbrella of a disaster declaration
Date: Tue, 04 Aug 2009 11:15:40 -0700
From: "Stephen M. Apatow" <s.m.apatow@humanitarian.net>
To: Pascal.Lamy@wto.org, hri@int-bar.org

Dear Colleagues:

We have reached a point, in the midst of the H1N1 Pandemic International Public Health Emergency, that leaders need to consider the advancement of regulatory protections under the umbrella of a disaster declaration.   To further complicate the H1N1 (2009) Influenza pandemic threat is the challenge of co-infection, as a Novel H3N2 Influenza A Variant has Emerged (Clinicians Biodefense Network).

See also: US State Department: China H1N1 Quarantine Measures - Request for U.S. Citizens to Register: Geoeconomic Stabilization Dialogue, Humanitarian Resource Institute,  29 July 2009.

The Wall Street Journal article "Geithner Vents at Regulators as Overhaul Stumbles", outlines how the political influences that facilitated the removal of regulatory controls for the OTC derivatives market and shadow banking system, will not support the changes that are necessary to stabilize the system, now close to two years into a global financial depressionary cycle.

The timeline for a second pandemic wave is September and according to the GAO the "U.S. is unprepared for second wave of swine flu (Kansas City Star, 29 July 2009).  The U.S. is our international reference point for pandemic preparedness.

Related:
Thank you for your attention to these matters and I look forward to your feedback.

Stephen M. Apatow
Founder, Director of Research & Development
Humanitarian Resource Institute
Humanitarian University Consortium Graduate Studies
Center for Medicine, Veterinary Medicine & Law
Phone: 203-668-0282
Email: s.m.apatow@humanitarian.net
Internet: www.humanitarian.net

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http://online.wsj.com/article/SB124934399007303077.html?mod=rss_com_mostcommentart

Geithner Vents at Regulators as Overhaul Stumbles
Wall Street Journal
4 August 2009

By DAMIAN PALETTA and DEBORAH SOLOMON

WASHINGTON -- Treasury Secretary Timothy Geithner blasted top U.S. financial regulators in an expletive-laced critique last Friday as frustration grows over the Obama administration's faltering plan to overhaul U.S. financial regulation, according to people familiar with the meeting.

The proposed regulatory revamp is one of President Barack Obama's top domestic priorities. But since it was unveiled in June, the plan has been criticized by the financial-services industry, as well as by financial regulators wary of encroachment on their turf.

Treasury's Timothy Geithner told regulators 'enough is enough.'

Mr. Geithner told the regulators Friday that "enough is enough," said one person familiar with the meeting. Mr. Geithner said regulators had been given a chance to air their concerns, but that it was time to stop, this person said.

Among those gathered in the Treasury conference room were Federal Reserve Chairman Ben Bernanke, Securities and Exchange Commission Chairman Mary Schapiro and Federal Deposit Insurance Corp. Chairman Sheila Bair.

Friday's roughly hourlong meeting was described as unusual, not only because of Mr. Geithner's repeated use of obscenities, but because of the aggressive posture he took with officials from federal agencies generally considered independent of the White House. Mr. Geithner reminded attendees that the administration and Congress set policy, not the regulatory agencies.

Mr. Geithner, without singling out officials, raised concerns about regulators who questioned the wisdom of giving the Federal Reserve more power to oversee the financial system. Ms. Schapiro and Ms. Bair, among others, have argued that more authority should be shared among a council of regulators.

"You are talking about tremendous regulatory power being invested in whatever this entity is going to be," Ms. Bair told the Senate Banking Committee last month. "And I think, in terms of checks and balances, it's also helpful to have multiple views being expressed and coming to a consensus."

Treasury Sec. Timothy Geither scolded a group of financial regulators on Friday, in what's been described as an expletive-laced tongue-lashing. Deborah Solomon reports.

Officials from the Federal Reserve and the Office of the Comptroller of the Currency, meanwhile, have questioned the creation of a new federal agency to oversee consumer regulations, a move that would take away powers from both institutions.

The government's proposal would empower the government to take over and break up large financial companies, merge two bank regulators, and toughen oversight of mortgages, among other things.

Administration officials say they aren't worried about the overhaul's prospects, adding that there is consensus on key aspects, including the regulating of over-the-counter derivatives. Treasury officials say they expected a big debate over the complex legislation. The first piece, which addresses executive pay, passed the House Friday.

"The industry is already back to their pre-meltdown bonuses," said White House Chief of Staff Rahm Emanuel. "We need to make sure we don't slip back to risky behavior where the institutions have all the upside and the taxpayers have all the downside, which is why we need regulatory reform."

Neal Wolin, Treasury's deputy secretary, said Mr. Geithner told regulators "they have the prerogative to express their views, but he wanted to make sure that, since everyone had agreed on the importance of achieving reform this year, everyone stayed focused on that goal."

Government officials said Mr. Geithner had expected regulators to object to parts of the plan that threatened their power or authority, but Treasury officials appeared caught off guard at how much the criticism resonated with lawmakers.

Mr. Geithner wanted to tell the attendees they shouldn't let turf battles get in the way of fixing a system that is clearly broken, Mr. Wolin said. He declined to comment on Mr. Geithner's tone and language.

In addition to Mr. Bernanke, Ms. Bair and Ms. Schapiro, other attendees at Friday's meeting were: Fed Governor Daniel Tarullo, Comptroller of the Currency John Dugan, Commodity Futures Trading Commission Chairman Gary Gensler and Office of Thrift Supervision Acting Director John Bowman.

Spokespeople for all regulatory agencies represented at the meeting declined to comment.

At a House hearing last month, Mr. Geithner said it was "perfectly reasonable and understandable" that different federal agencies would balk at giving up powers. "Frankly, all arguments need to be viewed through that basic prism," he told the House Financial Services Committee.

The administration's proposal would give the Fed broad discretion to supervise any major U.S. financial company and would also create a "financial services oversight council" to coordinate policy and help resolve disputes among regulators.

How power would be balanced between the Fed and this entity has emerged as a flash point, one that administration officials debated. Ultimately, officials felt the regulatory structure needed a single point of accountability, arguing that one weakness in the government's response to the financial crisis last year was clarity over which entities were in charge.

The administration has pushed for Congress to complete the overhaul by the end of the year. House Financial Services Committee Chairman Barney Frank (D., Mass.) and Senate Banking Committee Chairman Christopher Dodd (D., Conn.) have both said that remains the goal.

Both men, however, have suggested the overhaul could change from Treasury's proposal. Sen. Dodd favors giving extra powers to an oversight council rather than the Fed. Mr. Frank said Monday lawmakers were still working on a way to "make sure you have a sufficient broad base of participation and input" and "to make sure you have effective authority."

He said the flap several months ago over the Federal Reserve's role in allowing American International Group Inc. to pay large bonuses to employees "damaged the Federal Reserve politically."

The top Republicans on these committees, Sen. Richard Shelby (R., Ala.) and Rep. Spencer Bachus (R., Ala.), have also expressed skepticism over ceding too much power to the Fed.

"A rush to judgment where they basically throw these things together without any consensus is going to be a disaster," Rep. Bachus said.

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