At least he’s honest
March 29, 2010 | federal legislation, industry | Comments (0)From an op-ed by Martin Neil Bailey of the Brookings Institution in Politico today:
Most surprisingly, the Dodd bill lodges the new Consumer Financial Protection Agency in the Fed, as a bureau not an agency.
This has incensed critics on the left, but it looks like a clever ruse to use the Fed’s deep pockets as an independent source of funding for the bureau. It would have a Senate-confirmed head and would not be told what to do by the Fed. In the Fed it can coordinate with their bank regulators — which is an advantage.
So, overall, I like the Dodd proposals on consumer protection. If these proposals were to reduce consumer borrowing a bit, that would also be welcome.
(my italics) So, we’re going to live in a risk-free environment where the government dictates lending practices. Say goodbye to economic growth.
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