With the result of the bank stress test finally over, the Obama administration is shifting its attention away from the major banks and into the government’s own oversight structure. According to Treasury Secretary Tim Geithner, he and President Obama want the nation to have “more simplified, consolidated oversight structure.”

Regulators are discussing the substantial changes that need to be made in the regulatory system. Geithner and the Treasury will unveil a new proposal that aims to overall the entire banking industry. This is to prevent similar financial crisis in the future.

Despite the lofty intentions of the government, there are many questions surrounding the so-called resolution authority. Essentially, this is the creation of a single but powerful agency that monitors and assesses the risks that the financial system decides to take and deal with.

Already, the concept of consolidating all agencies involved in regulatory duties has been talked about but it remains a sensitive topic. Consolidating would mean that the existing power structure will be extensively replaced. Some agencies will overlap and will need to fold under larger ones. There are only a few agencies with major supervising roles right now including the Federal Reserve, the Securities and Exchange Commission, and the Federal Deposit Insurance Corp.

Many other agencies play more specific roles. Among these agencies are the US Commodities Future Trading Commission, Office of the Comptroller of the Currency, and the Office of Thrift Supervision among others. Because of its bad decision making in the past, the Office of Thrift Supervision is being scrutinized. It was in charge of supervising IndyMac, American International Group (AIG), and Washington Mutual which are renowned institutions that have contributed greatly to the financial disaster right now.

Geithner also revealed another plan. Previously, only major US banks have gained access to the bailout money because they were “too big to fail”. Now, the Treasury Secretary plans to give these dollars to smaller banks that need help. Even banking institutions with under $500 million in assets can apply for the Troubled Asset Relief Program (TARP) if they’re struggling with their losses. Some of the money returned by the big banks will be used for the TARP.

After weeks of speculations and leakage, it is finally confirmed: some of the nation’s largest banks need additional capital. Federal regulators finally announced last May 7 that 10 out of the 19 banks that underwent the stress test “failed” it.

Leading the pack is Bank of America which needs an additional $33.5 billion. Meanwhile, Wells Fargo needs $13.7 and it is closely followed by GMAC LLC which needs $11.5 billion. Citigroup and Morgan Stanley need $5.5 billion and $1.8 billion respectively. Among the banks that were given a clean bill of health are JP Morgan Chase, Goldman Sachs, US Bancorp, Bank of NY Mellon, and MetLife.

In spite of the vulnerable state the banks are still in, the government is confident about the financial industry. The Obama administration believes that even if the banks are not totally out of the woods yet, it is fast getting there. Almost half of the banks that have taken the stress test passed them. Even those that didn’t were actually in better financial shape that people originally thought.

Fed Chairman Ben Bernanke expected the report to restore investor confidence. And indeed, his projection proved to be accurate. Markets have improved steadily since the results were announced with rising share prices, better liquidity, and other signs of a stabilizing market. Regulators were also happy that capital marketers were willing to fill in the holes the stress test revealed at the banks.

The stress test showed that some of the major banks required a $74.6 worth of additional capital to ensure that they can withstand worst-case scenarios. Both Morgan Stanley and Wells Fargo sold over $15 billion worth of bonds and shares the following day. On the other hand, Bank of America said that it planned to sell 1.25 billion shares when they saw that investors were positive about their relatively small shortfall.

The Obama administration is pleased with this development. This is because if the banks are able to raise the necessary capital halfway by next week, the administration would not need to ask Congress for more bailout money.

With today’s economic crisis, it is important for everyone to cut cost where they can, whether in business or in their personal life. Saving money for yourself and for your family is actually simpler than you think. For this week’s roundup, we compiled a list of blogs that might help you save money on everyday expenses.

Jaimie Paynter @ Bargaineering introduced the idea of using allowance as a budgeting tool in the post “Do You Need An Adult Allowance?” Essentially, it takes the idea of “budgeting” one step further because everyone is familiar with the idea of allowance since childhood. Someone in authority controlled our spending. As an adult though, using allowance don’t need to be controlling. Rather, it can actually free from your financial burden when used property.

David @ My Two Dollars wrote a post titled “If You Don’t Need It, It’s Not a Bargain At All“. From this headline alone, readers will have a pretty good idea about what this post is about. It talks about how customers are usually encouraged to spend simply because “deals” are being offered in the market especially during hyped-up occasions.

J.D. @ Get Rich Slowly recently uploaded a blog post “How I Cut My Television Bill in Half“. Here, he provides some alternatives to cable television. Deluxe cable packages can cost a significant amount. But if customers know about other options that deliver the same kind of service, they can reduce their bills dramatically. J.D. gives viewers some choices such as buying shows from iTunes store and watching shows for free in Hulu.

Trent @ The Simple Dollar wrote an interesting post “Buying Fresh, Buying Cheap“. The blog post outlines the different ways a consumer can save money from buying fresh fruits and fresh meat. Usually, most people instantly assume that fresh is more expensive compared to canned goods. Trent reveals tht this isn’t necessarily the case when you know how to look for bargains.

The My Dollar Plan Blog consulted with newly-retired IRS officials about tax deductions from gas mileage in the post “Tax Savings: How to Deduct Tax Mileage on Your Personal Car“. With the kind of economy today, it is important to cut costs where you can, tax mileage included. This blog post shows how a car-owner can save money from using his car for business purposes.

It recently came out that the directors of 12 regional Federal Reserve Banks have ties with privately held financial institutions and banks. They are either board members or have significant shares in these institutions. This revelation has incited calls to overhaul the policies of the banking establishments as a whole. On Monday, the Wall Street Journal outlined how Stephen Friedman, a Goldman Sachs Group director and the chairman of the New York Federal Reserve, was allowed to hold both positions even after Goldman Sachs became a Fed-regulated bank last September.

Following the revelation, the New York Federal Reserve has faced a lot of criticisms on its corporate-governance practices. Other regional Federal Reserve Banks including those from Dallas and Kansas City had said they wouldn’t have permitted this type of situation to occur.

According to Cam Fine, the chief executive of the Independent Community Bankers in America, no regional Federal Reserve director should be allowed to have connections with a regulated financial establishment. He added that this “should be a very bright line”. The New York Fed is particularly important because a number of the nation’s largest financial institutions are found in New York.

When the Federal Reserve was formed in 1913 by Congress, it required the 12 regional banks to have nine board members. Three will be appointed by the Fed Board in Washington while six will be elected by the local banks. The regional banks are tasked to give recommendations about the Fed’s discount rate and other matters to the Washington office.

Under its rules, three Class C directors, such as Stephen Friedman cannot hold positions at banks that are regulated by the Federal Reserve. But lawyers sought a way around by asking for a waiver of the Fed policy. This allowed Mr. Friedman to continue his role as Fed chairman even as he held on to a large Goldman Sachs stock at the same time.

The Minneapolis Federal Reserve chairman also asked for a similar waiver. John Marvin, the chairman there, holds shares on both Morgan Stanley and Goldman Sachs. There is good news though. Other regional Fed banks have announced they wouldn’t permit such maneuvers. The Dallas Federal Reserve Bank has asked chief executive Myron Ullman to resign from his Pzena Investment Management position before he was allowed into the Fed board.

Washington Fed officials are responding to the call for more transparency. On Tuesday, Ben Bernanke has announced that more details will be revealed about its borrowers. Currently, it is also reviewing the rules for its regional bank directors in the hope that conflicts can be avoided in the future.