regulation reform

Facebook Dot Con Redux

You seriously expected to make money on the Facebook IPO?  Sucker!  Why any regular investor would be believe yet another IPO hype machine after the dot con era is beyond me, but suckered in they were.  Now the lawsuits are flying and we have yet another SEC non-action action that they would look into this.  Just the other day, the SEC let Lehman Brothers completely off the hook. The general lawsuit is described below:

Obama Sweetens The Pot Just Don't Look for a Chicken In It

A chicken in every pot and a car in every garage – Herbert Hoover, 1928

hooverchicken.jpgPresident Barack Obama wrote an op-ed in the Wall Street Journal, Toward a 21st Century Regulatory System, trying to justify his administration's decision to review and rescind Federal Regulations by executive order.

This order requires that federal agencies ensure that regulations protect our safety, health and environment while promoting economic growth. And it orders a government-wide review of the rules already on the books to remove outdated regulations that stifle job creation and make our economy less competitive. It's a review that will help bring order to regulations that have become a patchwork of overlapping rules, the result of tinkering by administrations and legislators of both parties and the influence of special interests in Washington over decades.

Where necessary, we won't shy away from addressing obvious gaps: new safety rules for infant formula; procedures to stop preventable infections in hospitals; efforts to target chronic violators of workplace safety laws. But we are also making it our mission to root out regulations that conflict, that are not worth the cost, or that are just plain dumb.

Regulation Power - Where are the Checks and Balances?

Before us we have the proposal to expand the powers of the Federal Reserve as the systemic risk regulator.

Consider this:

Thus within 18 months of taking office, Obama will likely have appointed five of the seven Fed governors . The central bank is designed to be independent from politics, so a president's best chance of influencing how the Fed will regulate banks or respond to economic changes is through these appointments.

The Federal Reserve acts independently of government, with pretty much only these appointments, each a 14 year term, and confirmation of each governor by the Senate.

fed reserve org. chart

Considering we cannot find out which institutions received Federal money or where the $12.82 trillion dollars of Federal Reserve financial commitments are, isn't this making the Democratic aspects of financial regulation even worse?

During the Bush administration we had then Treasury Secretary Hank Paulson, acting as CEO in Chief, strong arming banks and even Congress into passage and use of the TARP. No other ideas were seriously considered and Congress simply handed over the cash with a lot of scare tactic rhetoric.