Regulatory Rewrite in the US Hits Another Snag: OTS/OCC Buck Back, Question Fed Responsibilities
Listen, I understand the first big SIGTARP bust (as we reported here and on Going Concern yesterday) is a pretty huge deal but please make sure you see the forest not for the trees but the slimy little trolls sneaking around between them. With me, kids? Good, then let's go.
The regulatory battle continues and after Tim Geithner's "expletive-laced outburst" over the weekend (I'm still LOLing uncontrollably over that one myself so go ahead, ROFL is an entirely natural reaction to the news trust me), one has to wonder what exactly is going down over in Washington.
Turf wars? Bruised egos? Diabolical little pricks who look like Eraserhead throwing tantrums because things aren't going according to plan?
Oh happy day!
Top U.S. bank regulators will speak out on Tuesday against some key elements of the Obama administration's plan to reshape financial regulation, saying parts of it were unneeded or could be disruptive.Not only is Timmy cussing out Sheila Bair, the battle against the Fed as Regulator above all Regulator rages on as well and we would like the record to reflect that we couldn't be happier.
The officials' defiance, in prepared congressional testimony obtained by Reuters, came despite a warning given to them on Friday by Treasury Secretary Timothy 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.
But that seemed to have little impact on John Bowman, acting director of the Office of Thrift Supervision (OTS), an agency slated for closure under the Obama plan.
"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.
In addition, he said, "The OTS does not support the provision in the administration's proposal to eliminate the thrift charter and require all federal thrift institutions to change their charter."
Such words marked a retrenching of regulators' opposition to portions of Obama's plans to tighten oversight of banks and capital markets amid the worst financial crisis in generations and with the economy mired in a stubborn recession.
"We do not see merit or wisdom in consolidating federal supervision of national and state banking charters into a single regulator," FDIC chairman Sheila Bair said in her remarks ahead of the hearing on regulatory reform.
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.We will address Governor Tarullo's thoughts momentarily. Once we stop LOLing about Timmy's potty mouth (warning: this is going to be funny for a loooooong time)
Such a move would "undermine the authority -- and the accountability -- of the banking supervisor" he said.
Federal Reserve Board Governor Daniel Tarullo argued for preserving the Fed's bank oversight powers, with enhancements.
"It is essential both to refocus the regulation and supervision of banking institutions under existing authorities and to augment those," he said in prepared remarks.
This is absolutely fabulous. Keep going, asshats, the longer you delay this, the longer we have to pull back the curtain and expose what a joke all of this truly is.