Treasury’s Plan Would Give Fed Wide New Power

[Purveyor]

Source: New York Times

WASHINGTON — The Treasury Department will propose on Monday that Congress give the Federal Reserve broad new authority to oversee financial market stability, in effect allowing it to send SWAT teams into any corner of the industry or any institution that might pose a risk to the overall system.

The proposal is part of a sweeping blueprint to overhaul the nation’s hodgepodge of financial regulatory agencies, which many experts say failed to recognize rampant excesses in mortgage lending until after they set off what is now the worst financial calamity in decades.

Democratic lawmakers are all but certain to say the proposal does not go far enough in restricting the kinds of practices that caused the financial crisis. Many of the proposals, like those that would consolidate regulatory agencies, have nothing to do with the turmoil in financial markets. And some of the proposals could actually reduce regulation.

According to a summary provided by the administration, the plan would consolidate an alphabet soup of banking and securities regulators into a powerful trio of overseers responsible for everything from banks and brokerage firms to hedge funds and private equity firms.

While the plan could expose Wall Street investment banks and hedge funds to greater scrutiny, it carefully avoids a call for tighter regulation.

The plan would not rein in practices that have been linked to the housing and mortgage crisis, like packaging risky subprime mortgages into securities carrying the highest ratings.


Read more: http://www.nytimes.com/2008/03/29/business/29regulate.html?_r=4&hp=&adxnnl=1&oref=slogin&pagewanted=print&adxnnlx=1206756053-+QMEBkoB5zUnF8qYnqXadQ&oref=slogin

[MadMaddie]

1. Or the plan could simply protect the Robber Barons from

getting caught.

I don't believe for a minute that they are doing this for the good of the country.

[TomInTib]

4. Goodness, you are such a cynic.

But you are right on the money, of course.

Hell, I wouldn't doubt that the whole charade was allowed to run into the ditch just to put some more bizarre programs in place.

No matter how bad or weird it looks, it is always worse.

[MadMaddie]

9. It is amazing isn't it? There really is no bottom...they keep going

and going....and if McCain gets in it will continue.

[EVDebs]

2. Repeal the repeal of Glass Steagall ! That's for openers...

[thunder rising]

3. Now com'on you know the reason the tinkle down didn't work (again) is 'cause the Fed didn't have

enough power. We're for smaller government(s). Fiefdoms owned by corporations don't need a federal government.

We can watch "Roller Ball!!" It's coming. http://youtube.com/watch?v=IguzgGx7y-8

[ryanmuegge]

5. oh god

:scared:

[mainegreen]

6. how about

FUCK NO

[BadGimp]

10. amen

hehehehe

[noel adamson]

7. Abolish the Federal Reserve and let OUR government print it's own money.

It just plain works. It was the root cause of the American Revolution, (Britain outlawed colonial script). Lincoln's government issued greenbacks worked too.

Screw the Robber Barons; they should be on trial not getting even more power to suck the economy dry.

[Zynx]

8. Considering the economy has been more stable on balance in the over ninety years

since the creation of the Federal Reserve than before it, I say hell no. Is it perfect? No, but what is? I can't imagine letting Congress control our money supply.