Saturday, March 29, 2008

More power for the Fed?

This seems like it's going in the wrong direction:

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...


Reform and streamline financial oversight, yes. Broad new authority and financial SWAT teams, not so much.

1 comment:

Steven Smith said...

Wonderful. Let's give them more power to manage the economy as efficiently as they manage everything else. It isn't like a free market can handle it or anything. Sheesh. Bosse has it right... "not so much".