Dodd Financial Regulation Bill: Super Regulators Not the Answer
There are many valid reasons to be angry with bankers, and supporters of Senator Chris Dodd's (D-CT) latest rewrite of his financial regulatory bill, the Restoring American Financial Stability Act, have mentioned them all. Americans have heard all about greedy bankers, huge bonuses, shady accounting practices, and outright greed. But the reason for this rhetoric is nothing less than an attempt to seize control of the financial services industry and to micromanage it.
Unfortunately, if this ploy succeeds, the result would be an all-powerful bureaucracy that would do little to address the real problems in the industry and actually make future crises--and bailouts--more likely. The first step has already been taken after the Senate Banking Committee amended the 1,336-page original text with a 114-page manager's amendment and sent the bill to the full Senate after a 22-minute markup on March 22.