| | That thing is awful... It is like it was lifted from the pages of Atlas Shrugged.
The bill creates a new independent, consumer protection watchdog, housed at the Federal Reserve - independent is right, Congress can't even get the Fed to tell them where it is loaning money and they can't even pass a bill that forces the Fed to provide them with an audit report! But given that this bill was written by Dodd (of Countrywide, Fanny and Freddy fame) and that congress may be just pretending to be unable to rein in the Fed, for the sake of deniability, the independence might just be to keep it hidden from taxpayers in way that gives deniability to congress. Gee, I'm getting kind of suspicious in my old age :-)
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- "Independent Rule Writing: Able to autonomously write rules for consumer protections governing all entities – banks and non-banks – offering consumer financial services or products."
Well, that's about it for free enterprise. And independent authority can make any rule it wants. Don't we call that tyranny?
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- "Able to Act Fast: With this bureau on the lookout for bad deals and schemes, consumers won’t have to wait for Congress to pass a law to be protected from bad business practices."
Yeah, why bother with laws - those evil business people shouldn't get any advance warning of when they are doing something that will bring the wrath of the government down on them.
- "Educates: Creates a new Office of Financial Literacy."
Oh yeah... we've just been waiting for the government to explain financial things to us. They are so good at this financial stuff - like balancing the books, budgeting, efficient spending practices, and so forth.
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- "Works with Bank Regulators: Coordinates with other regulators when examining banks to prevent undue regulatory burden. Consults with regulators before a proposal is issued and regulators could appeal regulations if they believe would put the safety and soundness of the banking system or the stability of the financial system at risk."
If they consult too closely we end up with regulatory capture (the industry gets the government regulator in its pocket), but usually this is only partially the case - the regulations get a little fuzzy here and there and just a few special companies get an inside track and special deals and others get shafted. This bill stands as a clear example of arbitrary regulation, as opposed to objective law.
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"...imposing tough new capital and leverage requirements that make it undesirable to get too big..."
Sounds real business friendly doesn't it?
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- "Break Up Large, Complex Companies: Able to approve, with a 2/3 vote, a Federal Reserve decision to require a large, complex company, to divest some of its holdings if it poses a grave threat to the financial stability of the United States" and "Authorized to require, with a 2/3 vote, nonbank financial companies that would pose a risk to the financial stability of the US if they failed be regulated by the Federal Reserve."
These are from the Financial Stability Oversight Council - a new group that is run by Treasury Secretary (currently Tim Geitner - the fellow that cheated on his taxes).
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I didn't have the stomach to do any more.
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