Bush administration proposes sweeping overhaul of financial regulation

[Hannah Bell]

Bush administration proposes sweeping overhaul of financial regulation
Martin Crutsinger, Associated Press
Originally published 10:11 p.m., March 28, 2008
Updated 10:11 p.m., March 28, 2008
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Email this Print this Comments Change text size Subscribe to print edition iPod friendly Share this site The Bush administration is proposing a sweeping overhaul of the way the nation's financial industry is regulated.

In an effort to deal with the problems highlighted by the current severe credit crisis, the new plan would give major new powers to the Federal Reserve, according to a 22-page executive summary obtained Friday by The Associated Press.

The proposal would designate the Fed as the primary regulator of market stability, greatly expanding the central bank's ability to examine not just commercial banks but all segments of the financial services industry.

The administration proposal, which is to be formally unveiled in a speech Monday by Treasury Secretary Henry Paulson, also proposes consolidating the current scheme of bank regulation.

The plan would shut down the Office of Thrift Supervision, which supervises thrift institutions, and transfer its functions to the Office of the Comptroller of the Currency, which regulates banks. The plan would eliminate the distinction between banks and thrift institutions.

The role the Federal Reserve has been playing in efforts to stabilize the financial system after a credit crisis hit last August would be formalized.

http://www.rockymountainnews.com/news/2008/mar/28/bush-administration-proposes-sweeping-overhaul-fin/

[napoleon_in_rags]

1. Bush needs EXTRAORDINARY power.

whenever he fucks up, its because he doesn't have enough power. Just keep repeating that.

[leftofthedial]

2. in a related story, king george proposes

to give the Mafia sweeping new powers to regulate crime.

[SlowDownFast]

3. Should read: Bush Administration Proposes Sweeping Financial Cover-ups..

Book Cooking, General Free-Market Subversion and (middle-class) Taxpayer Bailouts for Greedy Pigmen Wall Street Banksters Who Royally Fucked Up.

[Warpy]

4. I do NOT want regulation coming from his party.

Seriously, that party has not changed its core dogma since they threw us into the Great Depression. Any regulation they propose will undoubtedly make the system harsh for human beings and safe for banks and plutocrats.

[EvolveOrConvolve]

5. Exactly right

Whenever a conservative proposes regulation "reform" it usually means less regulation for the greedy assholes at the top and more raping of the lower and middle classes through less oversight. Combining multiple bureaucracies into a single entity *will* mean less oversight, not more, and I can guarantee that some rich prick will take advantage of it.

[grasswire]

6. remember disaster capitalism

profit through chaos.

[lonestarnot]

7. And FDIC is doubling staff size in preparation for bank failures. Snort!

[Celebration]

8. death knoll to transparency

Anyone in favor of open government should hate this proposal. I admit the system is broken. Have them make assessments and report to Congress. Regulations should be clear, and they should be published, and they should have congressional oversight. Period.