Financial Reform: The Lengthy March Finishes (New Yorker)
I love Matt Yglesias’s portrayal from the financial-reform bill, which
finally passed Congress yesterday, as “underrated.” While you will find a few
of enormous problems that the balance barely handles (or does not really touch at
all), such as the problem of Fannie and Freddie and also the undue energy of rating
agencies within our economic climate, it really does something which reform bills
don’t always do: namely, reform the machine.
The bill’s two greatest achievements, I believe, are the development of a
consumer financial-protection agency and also the institution of the resolution
authority which will provide the government the energy to consider on the failing bank
holding company or investment bank (the F.D.I.C. already has this energy when
it involves more compact banks, but so far the federal government did not really have
the legal authority to consider within the country’s greatest financial
institutions). The customer financial-protection agency–that we authored about
almost exactly last year–has got the possibility to become the same as an
F.D.A. for financial items, and it is a strategy to among the system’s
greatest problems, that is that we have depended on bank government bodies (who’re
concerned about the financial well-being of banks) also to take care of the
interests …
Romney: Financial Reform Bill Too Long