Wednesday, July 22, 2009

The Allure of Outsourcing Financial Regulation

By Jesse’s Cafe Americain

One has to be fascinated with the proposal by the Obama Administration to effectively outsource the regulation of US markets and the protection of consumers to the Federal Reserve, an agency that is owned by the industry which it would be asked to regulate.
It is especially interesting given the recent history of the failure of that organization to do its job properly, failure to engage in open and transparent dialogue about its non-core (non-monetary) operations, and continuing resistance to taking direction from the government in matters related to fiscal and legislative policy that would fall under its regulatory purview while asserting its independence.
Its almost surreal. I cannot believe anyone is taking this proposal seriously.

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