John C. Dugan, the comptroller of the currency, blasted a proposal to impose stiff new insurance fees on banks as unfair to the largest banks, which he regulates. The financial crisis stemmed in part from problems at small banks, he insisted.
Sheila C. Bair, chairwoman of the Federal Deposit Insurance Corporation and the regulator for many smaller, community banks, could barely hide her contempt. The large banks, she said, had wreaked havoc on the system, only to be bailed out by “hundreds of billions, if not trillions, in government assistance.” She added, “Fairness is always an issue.”
Behind the scenes, the two regulators have been clashing over a host of issues, officials said, be it the administration’s coming regulatory overhaul or Ms. Bair’s campaign to shake up the top management at Citigroup.
- The Federal Reserve as Top Regulator
- "Super" council of regulators to monitor systemic risks
- Global, across borders, regulation
- Less leverage, more capital requirements
- Different "wind down" method for failing banks?
- To include OTC derivatives as subject to regulation
While there is all of this talk of one super agency, there are reports of an additional agency, aimed at protecting consumers.
House Financial Services Committee Chair is not so convinced of a super agency and one might note the House now has a majority to audit the Federal Reserve.
Do we really want the Federal Reserve, which is a gathering storm to get them under the people's view and control, obtaining even more power with no oversight really and transparency?
Oh yeah, here come the lobbyists.