Good News for the Kansas City Fed, Even Without TBTF to Supervise They'll Still Have a Job
The Fed is just rackin' up the wins this week, aren't they?
The Federal Reserve would continue to oversee smaller banks around the country under an amendment approved Wednesday to financial reform legislation that is being considered by the Senate, a major victory for the Fed.
Leaders of the central bank have argued vehemently that moving the power to regulate even state-chartered banks to other agencies would have broadly undermined the effectiveness of the Fed. The bill originally introduced by Sen. Christopher J. Dodd (D-Conn.) would have stripped the central bank of the ability to regulate all but the handful of banks that hold assets of more than $50 billion.
But lawmakers voted 90 to 9 Wednesday morning to defeat Dodd's plan, favoring instead a measure by Sens. Kay Bailey Hutchinson (R-Tex.) and Amy Klobuchar (D-Minn.) that would keep the Fed as the primary supervisor of thousands of smaller banks across the country.
But as usual, a Fed fucker telethon saved their ass at the last minute:
The vote followed a vigorous campaign by Fed leaders -- especially the heads of regional Fed banks around the country who would have been stripped of most of their regulatory authority -- who argued that bank oversight is crucial to their ability to manage the economy. Loss of that regulatory authority would have left regional Fed banks in cities such as Richmond, Philadelphia and Kansas City, Mo., with a diminished role as economic policymakers.
Excuse me, WaPo, even under the Dodd rule, Richmond would have still had Bank of America AND BB&T. It's Kansas City that wouldn't have shit to do and would be twiddling their thumbs desperately trying to seduce Jamie Dimon into moving JP Morgan HQ to the 10th district so they'd have someone to regulate.