Despite the barrage of nuclear criticism that welted upon the Federal Reserve for its failure to prevent the financial crisis, the despised board may crawl away like a cockroach from under the foot of regulatory reform; somehow the bank – which is a private corporation mind you (think Federal Express – not really federal is it?) – has escaped with not just its bank overseer/ supervisory powers completely unaffected, but with a newfound level of authority to enhance their capacity to enforce them.
Currently, a swarm of bipartisans are fighting to regulate a large majority of the central bank’s authority, which initially extended well beyond just a 800 state-chartered banks, and onto another 5,000 more holding companies. The bill that would accomplish
regulatory reform was introduced by Senate Banking Committee Chairman Chris Dodd, and it effectively reduced the Federal Reserves authority to only the 55 biggest holding companies. His opponent, Sen. Kay Bailey Hutchinson introduced an amendment on Friday that asks to reverse the very provision that could force the Federal Reserve Company to actually do their job. The Republican from Texas is backed by Senators Bob Corker (R-Tenn) and Jon Tester (D-Mont; so, is he really democrat?), plus nine co-sponsers, all striving to keep the Federal Reserve’s and in the pockets of smaller institutions.
Has American learned her lesson, or is everybody going to let business continue as usual?
Trackback from your site.