Markopolos testimony
http://cspan.org/Watch/watch.aspx?MediaId=HP-A-15082

2081,huh? Vonnegut sure was an optimist.

The agency will not replace the Fed and the FDIC. The Fed will still exist and do monetary policy. The FDIC will still exist and do resolutions. But there will be one regulator to do bank examinations and supervision. Right now, the OCC examines and supervises national banks, the OTS does thrifts, the Fed and states do member state banks, and the FDIC and states do non-member state banks.

A super-regulator would examine and supervise all banks. The point is to eliminate the race-to-the-bottom problem and forum shopping (which was particularly a big problem with (a) thrifts, because the OTS was bleeding to death for assets and so got really lax; and (b) states, who also wanted charters, see, e.g., Georgia). Also, note that most banks that have failed this year have been state banks. That would be the fault of the Fed, FDIC, and state regulators. (Of course WaMu, IndyMac, etc, sort of drowns them all in assets, and whose fault was that? OTS.)

The ONLY reason he is doing this is to forestall ANYTHING being done, making the legislation so all encompassing it would never be made law let alone enforced.

This is the typical political shenanigan our so-called elected incumbents are norotious for: propose legislation that will take years, decades to wind its way thru the halls of government getting clippes and neutered along the way, that way maintaining the status quo.

I cannot believe anyone on this board would fall for this and call it a great idea.

Fed to markets: Let the bubble blow

“By standing pat, the Fed and Ben Bernanke risk a further surge in gold prices, probably above $1,100 an ounce, and oil prices, probably close to $90 a barrel. The dollar, while it’s fallen substantially, is still well off its lows against the euro and the British pound seen last year. This bubble has further to go.

The Fed is playing a dangerous game of chicken with investors and with the jobless. Unless it helps let the air out of some of this rally soon, the drubbing the market will take once things do turn could be vicious.

For now, it’s steady as she goes for Bernanke, gold bubble or stock rally be damned. Friday will be a pivotal day for investors. ”

….Chris Dodd does not inspire confidence from me either….I wonder what his peers think of his ideas…

http://business.timesonline.co.uk/tol/business/economics/article6903707.ece

Interesting tidbit from the link above:

“Several politically sensitive issues will require international agreement, including trade deficits and exchange rates. China’s refusal to be rushed into appreciating its currency has already led to international tensions, for example. Moreover, to cut trade gaps, export giants such as China, Japan and Germany would be required to promote domestic consumption and rely less on foreign demand. Countries with big trade deficits, principally the United States, would have to boost their savings rates.”

At the G-20, the USG representatives will be looking at this “boost their savings rate” with particular disdain. The USG’s fundamental interest is to keep spending in the most scatter shot and manic way. It is very frightening to contemplate the fact the core interests of US citizens are opposed to the core interests of the US govt. When the State can no longer fund the War Machine’s pursuits abroad, I will be somewhere else…like Oxapampa or Pozuzo, under an assumed name. Something like Johnny Pacheco.

this guy Doddreally hates wonderful Fed. But this proposal is a joke. So i wonder what is he after…