Regulator turf wars

For almost a year now I have said that long-lasting recovery can only come from important regulatory changes. We haven’t discussed this important element of future success much lately.

Unfortunately, Congress and the public have lost interest in regulatory reforms and to such a degree that the leaders of regulatory agencies almost all made public announcements this morning trying to refocus Congress. The ironic thing is that the regulatory reform effort has stalled in part due to regulator turf-wars. “Yes, we are for regulatory reform, but just don’t touch my agency!” Ahhh, Washignton, gotta love it.

For example, the Office of the Comptroller of the Currency was to be merged with the Office of Thrift Supervision to create a new agency called the National Bank Supervisor. However, the head of the OCC said in a press release, “We see no reason for the government to incur the cost of changing the 146-year name of the agency as the Office of the Comptroller of the Currency.” Oh, brother! It’s not about the name change stupid, it’s about a better, more powerful regulatory framework!

Meanwhile, the dude who heads of the OTS said that its an open question of whether or not the OTS needs to be merged with the OCC, especially since, according to its head, “The OTS did not regulate the largest banks that failed; the OTS regulated the largest banks that were allowed to fail.” Are you friggin‘ kidding me? It’s not about blame at this point Jack, it’s about a better, more powerful regulatory framework!

Etc. Etc. Etc. This is a small sampling of what’s going on. I consider it to be shameful. The only way to break through is if there is public will that compels Congress to enact change. At this point that will power seems to be absent. This is not a good sign and is something that I will continue to watch.

Have a good weekend everyone! I have a family reunion to attend. Hopefully I can find my way to the tequila with ease.

Jason