Thursday, May 28, 2009

More Details Emerging on New Regulatory Structure

WSJ is reporting on the changes in regulatory structure, which we have been focusing on for some time.

As we have reported, Treasury Secretary Geithner is expected to announce details of the new plan within a few weeks. It appears that there will be one super-regulator.

What's new in the WSJ reporting is a few details:

The new bank regulatory agency could prove controversial because it would consolidate the Office of the Comptroller of the Currency and the Office of Thrift Supervision and strip supervisory powers from the Federal Reserve and the
Federal Deposit Insurance Corp.

The Fed and the FDIC would gain other powers, though, as White House officials want the Fed to be able to oversee systemic risks in the economy. They also want the FDIC to have new powers to take large financial companies that aren't banks into receivership.
Put simply, regulations are always bad. Regulations designed by a group that is anti-free market can suffocate the regulated sectors.

Further, the money players, Goldman Sachs, the Carlyle Group etc. already, I'm sure, are working Congress so that their special niches are not only protected but advanced. Aside from the headline news, the details will contain breaks for the inside players and obstructions for those not on the inside.

There is a road to serfdom and Obama, Goldman Sachs, the Carlyle Group, the UAW and the AFL-CIO, Congress and crazed leftist are leading the way.

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