Geithner testimony
November 19, 2009 | federal legislation, industry | Comments (0)From his written testimony to the Join Economic Committee today:
Banks and non-banks operate in the same market and compete for the same customers. But they play with a different rulebook. Non-banks like mortgage brokers, consumer credit companies and payday lenders escape federal supervision almost entirely. The inconsistent regulatory regime sparked a race to the bottom in the mortgage lending market, and the consequences are tragic and well known.
What’s this “escape federal supervision” nonsense? Lots of industries aren’t “supervised” by the federal government. Is there a presumption that every industry not “supervised” by the federal government isn’t otherwise regulated?
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