Report: GAO to probe 'regulatory capture' of Wall Street watchdogs

[think]

Source: The Hill

By Peter Schroeder - 03/04/16 04:05 PM EST

A government watchdog is reportedly preparing to examine whether the Federal Reserve is too lax in its oversight of banks.

Reuters reported Friday that the Government Accountability Office (GAO) is embarking on its first-ever probe on “regulatory capture,” following a request from two House Democrats.

Rep. Maxine Waters (Calif.), the top-ranking Democrat on the House Financial Services Committee; and Rep. Al Green (Texas), the top Democrat on that panel’s oversight subcommittee, asked for the review.

The letter was sent in October, but the GAO told the news service it was planning for the external review.

Read more: http://thehill.com/policy/finance/271851-report-gao-to-probe-regulatory-capture-of-wall-street-watchdogs

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This ought to be interesting.

[forest444]

1. It seems to me they're feeling the Bern.

[Igel]

5. Or they're just playing local politics.

Green is the congressman who helped in the publicity of the guy who was arrested for non-payment of student loans. Called the press conference, stood by the guy as he told his tale of woe.

Federal marshalls arrested him, but the way the press was spun was that it was "sheriffs" who did it. Green's primary challenger was former chief sheriff/police commissioner for the county. Sort of made it look like the police force with its barely former police force was engaging in racial suppression of black men. In a district with a large black population, this was a winning, albeit populist, strategy, since the challenger's police force had absolutely nothing to do with the serving of warrants. DU heard half the news. The full news would have involved dissing a (D) representative, and that's unpopular.

The House Ways and Means Chairman is a (R) from the 8th district, Brady. The 8th district is adjacent to Green's 9th district. Anything that shows lax oversight of banks will ultimately go back to provide ammo against Brady, without having the GAO report be about Brady. Doesn't matter that Brady's been in charge of the committee for a year and it's unlikely that the GAO report will deal with matters from the previous year, any more than it mattered that Green's opposition's officers had nothing to do with serving the warrant on the guy who was arrested over student loan debt.

[PSPS]

2. Regulatory capture has been standard practice since reagan

Practically every federal regulatory agency is packed with "former" employees of the industry being regulated: FCC, FDA, etc.

[Jopin Klobe]

3. " ... whether the Federal Reserve is too lax in its oversight of banks ..." ...

... "whether"? ... "WHETHER"???? ...

... yeah, let's just check this out to see if it could possibly, remotely, EVER be anything possibly, remotely true ...

... oh, I do hope they do a thorough and complete investigation ...

... oh, my, yes ...

... I'll alert the (cough) "media" ...

[dreamnightwind]

4. Great news!

The Fed in particular has faced pointed charges from congressional Democrats, especially after a former regulator at the Federal Reserve Bank of New York charged with monitoring Goldman Sachs claims she was fired from the regulator for refusing to soften her approach.

...

A GAO official told Reuters the review would cover all financial regulators including the Fed. The central bank plans to cooperate with the probe.

[paleotn]

6. I'll slip that one smartly in the "well duh" file. (nt)

[OxQQme]

7. Yep..

"but the GAO told the news service it was planning for the external review."

"We've got this covered. Going to move out the old foxes for the new ones."

"Move along."


Me? Suspicious? Nah

Cut it out you guys,,,,,,,,,,,,,,,,,,