Fed May Gain More Financial Oversight

[cal04]

Source: Washington Post

Some Worry Plan Would Give Bank Too Much Power
Congress is moving to create strong new oversight of the financial sector that would likely give the Federal Reserve authority to examine the workings of a wide range of companies in an attempt to address one of the key failures that led to the financial crisis.

But the initiative, which could be finalized in the House by spring, is raising concerns about whether it would muddy the Fed's traditional mission and concentrate too much power in a single federal body.

The legislation envisioned by House Financial Services Committee Chairman Barney Frank (D-Mass.) would put the Fed, or less likely another government agency, in charge of protecting the stability of the entire system, Frank and other congressional sources said.

(snip)
Under Frank's legislation, the new regulator would likely be given the power to gather information about the inner workings of banks, investment firms, insurance companies, hedge funds and any other entity big enough or so intertwined with other companies that it creates the risk of a systemic collapse. These companies would have to provide detailed information about how they manage risk, their derivative contracts and the extent to which they use borrowed money.

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2009/01/25/AR2009012501686.html?hpid=topnews

[Narkos]

1. There's plenty of authority

we just need to get these crazy market fundamentalists out of government pronto.

[aquart]

2. Because their oversight has been so effing brilliant up to now?

I thought we had been restored to sanity as a nation. Clearly not.

[defendandprotect]

3. Fed already has too much power -- it's making economic decisions Congress . ..

should be making --- political decisions re economy--

Fed has been negotiating on its own with banks re bailouts!

[notesdev]

4. Not just economic decisions

but a total usurpation of the Congressional power to coin money.

The Federal Reserve isn't even a government agency! They should not be the object of the delegation of government powers.

Hell, they shouldn't even exist in the first place. Who benefits by putting a banking cartel in charge of our money supply?

[defendandprotect]

7. Absolutely . . . that's a given . . . and surprised that . . .

some people at DU are almost offended when this is brought up!

Fed Reserve is really spooky --!!

Did you read Wm. Greider's "Secrets of the Temple" --- ??

Also from DU in November . . .

The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans
From here: http://www.bloomberg.com/apps/news?pid=20601087&sid=aat...

They're keeping it secret. Bloomberg has filed suit to force them to disclose what exactly is going on. This can't possibly be happening, can it? What the hell?!

[Baby Snooks]

5. The new Congress...

That is what the Federal Reserve is already becoming. It has lent an estimated $10 trillion to the banks, and apparently some of the brokerages, in the past year. Little of it publicly disclosed. And of what was disclosed, it has refused to disclose who it lent $2 trillion to. And Congress sits there and says nothing.

If the banks default on the loans, three guesses who pays for the losses. The American taxpayer.

Instead of dismantling the oligarchy, Congress seems intent on strengthening its foundation.

[defendandprotect]

8. Are we ever going to face the fact that . . .

part of the Democratic Party has been corporatized . . . ???

And the DLC is the corporate-wing of the Democratic Party . . . ???

If we want less corporate influence over our government, this is a reality

that has to be faced--!!!

[No Elephants]

6. NO, Barney, NO. I love ya, but NO!