Treasury: Fed to set higher bank capital standards

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<blockquote></blockquote>WASHINGTON (MarketWatch) - The Obama administration on Wednesday will propose the establishment of the Federal Reserve as a consolidated supervisor of large systemically significant financial institutions that will require higher capital standards and more scrutiny of their activities because of the risk to the system of their collapse, according to a senior administration official on Tuesday. The proposal will also call for the elimination of the Office of Thrift Supervision, subsuming it into a new "National Bank Supervisor," agency based on the Office of Comptroller of the Currency agency. It also seeks to set up a Consumer Financial Protection Agency, which will approve or reject mortgage products and set up new disclosure rules for home loan lending, he added



Hmmmm? Think it will actually be implemented?
 
How much is this exactly like what Paul Krugman was warning about in his editorial this weekend? Just what FDR did in '37 that led to a rejuvenation of the depression.
 
heh, his op-ed pieces come to my front door on the dead tree with black ink that gets all over my hands.



I know, I'm so retro actually subscribing to the dead tree edition...
 
NY Times home delivery is expensive on a dead tree. We actually used to pay $79/yr for premium online access, but they made it free about a year and a half or two years ago. Maureen Dawd still bugs the crap out of me!
 
[quote author="furious sugar" date=1245219149]Hmmmm? Think it will actually be implemented?</blockquote>


Yes, announcement will come tomorrow. <a href="http://media.washingtonpost.com/wp-srv/politics/pdf/nearfinaldraft_061709.pdf">Here is the PDF of the "near" final draft</a>. And... <a href="http://www.washingtonpost.com/wp-dyn/content/article/2009/06/16/AR2009061601887.html">the WAPO has an article on it</a>.



As for the NY Times, great paper, but I still think Gretchen Morgenson is a hack.
 
Capital requirements will be useless if the older banks/leaders are allow creative mark-ups on their toxin assess. The new banks may be kept out of the market by a high capital requirement since their good debt is accurately account.

Old: high capital with funny books

New: Lower capital with good books.
 
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