I  just love this info/chart porn:


Proposed Changes in Federal Regulation of the Financial Industry
click for ginormous graphic

via NYT


Some Lawmakers Question Expanded Reach for the Fed
NYT, June 17, 2009


Category: Regulation

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

19 Responses to “Structural Changes in Fed Reg of Financial Industry”

  1. Chief Tomahawk says:

    Isn’t The Big Picture going to blog about the U.S. Open? Financial TV seems preoccupied with coverage. Although now that Tiger has finished we can go back to the economy….

    [I'm kidding, BR. Maybe one needs to add this to the list of fixes for Fin. TV?]

  2. bonghiteric says:

    Yep, no gray area there between #’s 4 & 5

  3. FromLori says:

    More of the same the obamageddon cries wolf and then appoints the wolves to guard the henhouse.

  4. DMR says:

    Barring the WTF inducing point #1, this chart actually brings into perspective what I DO like about the Obama initiative. If this were phase I of a multi year effort to bring the economy back in line, then it is a really good Phase I. I’m always wary of people who claim to know all the answers without piloting a small portion of their agenda first.

  5. call me ahab says:

    following on bonghiteric’s observation- the Fed and FDIC are certain to get into jurisdictional skirmishes-for instance-

    the Fed says a particular TBTF bank is sufficiently capitalized or should get taxpayer assistance to stay afloat and the FDIC says they need to be seized to protect the depositors- who wins that battle???

  6. Marcus Aurelius says:

    They should just wrap this bullshit into the Department of Homeland Security and waterboard everyone involved.

  7. Onlooker from Troy says:

    Dr. Hussman has a good take on this restructuring in his latest weekly commentary:

    I love this little nugget: “This authority should emphatically not be under the discretion of officials at the Treasury or the Fed, who hop into bed with bank executives more eagerly than a five-dollar gigolo”


  8. willid3 says:

    maybe if prop 1 is that all of the members have to agree on a course of action if there is a conflict between 2 of the agencies.

    it just doesn’t fix the problem of an agency that decides to not regulate at all.

    though i can see another consolidation. eliminate the sec and merge it with the commodities futures trading commision

    and add a new job to that new agency the consumer one, managing the consumers interaction with brokers since nobody really does that now? just a thought

  9. call me ahab says:

    I like Marcus’s idea- simple and effective

  10. bonghiteric says:

    I’d like to see the hiring/post-employment guidelines. The 30+ year menage a trois of banking, legal, and governmental personnel will neuter the most stringent regulatory framework.

    Furthermore, I would also propose that a mandatory number of enforcement actions be legislated for each regulatory body. And if the agency doesn’t meet its quota of enforcement actions they get twice as much money in their subsequent year’s budget that must be allocated to enforcement actions. Just my way of countering the logic of bureaucratic inertia.

  11. VennData says:

    I find it hard to believe Congressmen would object to giving authority to the Fed that’s outlined in this middle-of-the-road proposal. Why, who in the heck is going to receive the buckets of lobbyists money at the Fed?

  12. Pat G. says:

    Looks like a sweep “left”. Fumble!!

  13. cvienne says:

    @Pat G…

    Looks like the “holy roller” play (Stabler – Casper)…Touchdown!

  14. rch says:

    Marcus Aurelius: perfect

  15. grundy says:

    It seems the only two agencies that have really done their jobs are the Office of the Comptroller of the Currency (OCC) and the FDIC. The majority of the subprime/securitization/derivative issues occurred outside the bank charter and thus were under the purview of the Fed. As such, I see five steps that are prudent as we reform our regulatory system. First, eliminate the OTC and the thrift charter. Second, give the OCC supervisory power over banks and their holding companies. Third, do not split the consumer compliance out of the regulatory agencies. An additional agency will not only be less efficient, but also less effective. Fourth, place the Fed in charge of regulating insurance and other large systematically important institutions. Finally, Combine the CFTC and SEC.

    The Fed’s core competency is monetary policy not bank supervision. Let OCC, continue with prudential bank supervision and let the Fed do what they do best – monetary policy.

    On a somewhat related note, I can’t believe anyone still listens to Barney Frank. He has no class and just wants to push his personal agenda. Why does anyone on the hill listen to that guy?

  16. Mannwich says:

    Sorry, a bit off topic, but had to post this re: the PPT……


  17. Christopher says:

    Who needs comptrollers anyway….the bane of “creative capitalism”!!

    That chart looks like the bottom part of my Scot-Irish-KY Hillbilly-Detroit Trailertrash family tree.

    Speaking of …..
    So now BIG TOBACCO is a drug company.

  18. AmenRa says:

    Didn’t the OCC publish the notational amount of who held what in the derivatives market? Are they being eliminated because they shed some light on the true value of the financial institutions?

  19. mark mchugh says:

    Weird. The graphic looks like something prepared by the Detroit Lions offensive coordinator. Like changing the blocking assignments will turn the franchise around. Why doesn’t anyone want to talk about the failure of the individuals that were in place under the existing system.

    As far as I can tell, Geithner spent 5 years at the New York Fed spinning in the big chair, and now he’s a reformer? Pass the Maalox…..