The Panel set out to Govern Financial System

The new regulatory board Discount coach outlet online charged with overseeing the stability of the financial system took its first big steps on Tuesday to set out tentative guidelines to limit trading by banks for their own accounts and to restrict the growth of the biggest financial companies.

The Financial Stability Oversight Council, the grand council of financial regulators created by the Dodd-Frank Act, also proposed rules as to which large financial companies that were not banks would be regulated by the Federal Reserve because they constituted a potential threat to the nation’s financial system’s stability based on their size.

It is likely to take several days for Cheap coach purses outlet Wall Street to wade through and decipher many of the implications of the recommendations, which were embedded in reams of studies, reports and regulatory filings released simultaneously Tuesday afternoon. Among the four documents was a 79-page report on the Volcker rule, the ban on trading by banks for their own accounts that is named for Paul A. Volcker, the former Fed chairman who championed the idea, and 46 pages of proposed rules on regulating nonbank financial companies.

The recommendations made public on Tuesday are subject to revision based on public comments and the recommendations of various other state and federal regulatory agencies. But the proposals are among the most concrete steps yet aimed at preventing financial institutions from becoming “too big to fail” and at keeping tabs on insurance companies and other companies whose activities could endanger the American economy.

Treasury Secretary Timothy F. Geithner, who serves as chairman of the oversight council, said the proposed rules and policy recommendations were necessary “so that consumers and investors can have more confidence that they won’t be taken advantage of and so that businesses and working families will not be vulnerable again to the type of crisis we’re just coming out of.”

Among its actions, the council laid out a set of 10 steps to adopt the Volcker rule.

Jaret Seiberg, a research analyst at MF movado watch Global’s Washington Research Group, said in a report that some of the council’s Volcker rule recommendations were “even more positive than the industry was expecting,” including provisions that would allow banks to hedge trading positions used in market-making activities that serve clients.