Expanding Power

Here's an article about the proposed new powers of the Fed.

http://www.bloomberg.com/apps/news?pid=20601068&sid=aZ8kIhVPApw8&refer=home

The proposal includes combining the Office of the Comptroller of the Currency and the Office of Thrift Supervision, transferring state bank regulation to the FDIC, and expanding the Fed's legislated "lender of last resort" function.

It also includes the establishment of three new regulators: the prudential financial regulator, the business conduct regulator, and the corportate finance regulator.

Some would assert that a reason behind the current financial turmoil was the increased regulations on banks that created incentives to expand the use of these new financial derivatives. So regulation may have gotten us into this, but let's see if it can get us out of this.

Let me know what you think.