Sunday, June 17, 2012

Too Many Bank Regulators Mean Poor Regulation


 
We presently have too many regulating agencies supervising banks. True, state-chartered banks are supervised separately.And there is a question of states’ rights here, as there are currently with insurance regulation.
But even among those banks with federal charters, we need but one overseer. There has to be a way information can be coordinated under one control in order to achieve better coordination..
I would suggest the Federal Deposit Insurance Corp and not the Federal Reserve. (I have commented in the past on the latter’s ineffective efforts in its primary job of controlling inflation.)
Too many current regulators, with thousands of pages of contradictory and confusing edicts that are interpreted by whim of too many bureaucrats, is a sure-fire formula for the unintended consequences our economy has been subject to. (See the Earl J. Weinreb NewsHole® comments.)




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