I keep writing about our inept federal regulators, about their actions and how they do everything but regulate what they set out to do.
I have taken particular aim at the now year-old Dodd-Frank Act with its over 250 provisions still to be completed, and which has had so many, by now, countless unforeseen negative effects.
Such as forcing the banks “too big to fail” to keep adding to capital. This makes them less profitable, when they must be able to attract necessary capital for a thriving economy.
Moreover, this is foolish when capital cushions can be wiped out overnight whenever you mark-to-market the bank’s assets in poor markets, as in 2008. (See the Earl J Weinreb NewsHole® comments.)
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