Wednesday, August 05, 2009

The FedReserve as Monolith: Lousy Policy

Rahm-a-Jamma Emanuel, the personification of "FIB", speaks through sockpuppet TurboTim Geithner.

In private remarks punctuated with expletives, Geithner urged the regulators to end their turf battles and show support for President Barack Obama’s plan, according to a person familiar with the situation on Monday.

...“We do not support the administration’s proposal to establish a new agency, the National Bank Supervisor (NBS), by eliminating the Office of the Comptroller of the Currency … and the OTS,” Bowman said in written remarks to be given to the Senate Banking Committee at a hearing

…John Dugan, Comptroller of the Currency, warned lawmakers in his remarks that the existing plan would wrongly give the Federal Reserve the right to ‘override’ the views of other regulators when it comes to supervising very large banks.

Such a move would “undermine the authority — and the accountability — of the banking supervisor” he said.

The proposed "National Bank Supervisor" would also eliminate the OTS office--which admittedly has its own problems.

But putting all, or substantially all, of bank regulation into the hands of the moron-guided FRB (the Bubble Factory), usually headed by a distinctly political-toady appointee?

Not this year, folks.

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