One of the pillars of change that I have been calling for is a change in the institutions that watched, but did not act, as the world’s financial systems glutted themselves on debt and then suffered colossal acid reflux of that debt. The Obama Administration has proposed sweeping changes to the U.S. financial system. Unfortunately that major proposal has stalled mostly due to (get this) regulator turf wars: Don’t take away my mole hill! In particular, regulators are concerned that the Federal Reserve is too powerful as imagined post reform.
Today, Ben Bernanke, the Chairman of the Federal Reserve has suggested an end run around the proposed changes. Namely, BenBer recommended in front of Congress this morning the creation of a council of U.S. regulators to supervise and monitor the U.S. financial system.
* Interesting points: There were not many details provided. And really, who cares? The details are not interesting at this point because public negotiations have not even begun in Congress over the future of the U.S. financial system regulatory structure. What is interesting is that there is some movement and that (what I feel to be is) the issue most important to making sure this bullpoo never happens again still has some traction. Whew!
Jason
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