Fed Fails in All Duties, FDIC/Treasury Demand Fed Receive More Opportunities to FAIL



You know, I couldn't pass up this little gem tacked on to the bottom of the FDIC article on Bloomberg earlier this morning which inspired the FDIC to send out its own correction in lieu of a Bloomberg clarification (this means war!).

The powers that be are still insisting that the Fed is the agency best equipped to serve as ultimate regulator, though I argue here that not only has the Fed failed in what duties it already has (hello bank regulation and monetary policy FAIL), it's failed miserably. But hey, who am I to judge?


As Congress prepares to overhaul financial rules, Bair is seeking power to shut bank and thrift holding companies. She also recommended that Congress set up a council to monitor large firms for activity that poses threats to the system. The FDIC, Fed, Treasury and Securities and Exchange Commission should be on the panel, she said. Treasury Secretary Timothy Geithner has signaled he prefers giving the Fed the authority.

The Fed would be a “logical” choice because it already oversees bank-holding companies, Bair said. There is “risk that spans the system” posed by companies without federal oversight, including insurance firms and hedge funds, Bair said.

“For the system-wide issues, it would be better to get the major regulatory agencies together in a legally formed council that would be charged and given responsibility for making sure that systemic risks are identified early and addressed,” Bair said.
(source)

Logic and the Fed don't belong in the same sentence, Sheila. But you probably are blissfully unaware of that little piece of quality information...

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

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