The politics of it
November 9, 2009 | federal legislation, industry | Comments (0)This conservative blogger looks at the politics of CFPA:
According to Politico, the financial reform legislation being pushed by liberals in the House may include a provision to give the federal government the power to break up or shrink banks and other financial firms that are deemed by bureaucrats to be “to big to fail.” The legislation would give bureaucrats the power to declare that a bank in good financial standing is a future systemic risk. The House is also working on several other financial regulatory bills, including one that would establish a consumer financial protection agency, and will combine them all together into one huge package at a later date.
Senator Chris Dodd (D-CT) unveils his version a new regulatory scheme for financial companies next week and is working on securing Senate floor time for after Thanksgiving. Dodd’s bill may merge several of the existing regulators into one agency, and is expected to fold the Fed’s existing bank regulatory powers into the new bureaucracy.
The voters were on the record last week saying no to big government. Yet elites in Washington, D.C. are still acting as if only government can solve the ills of America. They just don’t get it.
That last point is very cogent. Merits of the CFPA aside, conservative and moderates simply don’t want to create a new government bureaucracy. And their constituents don’t want them to.
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