While the blogosphere was busy with a day in the life of Henry Gates (along with a bit here and there on witch-doctor pictures, "birthers," and possibly health care politics if there was any time or space left,)
apparently a significant part of the financial future of the country is being determined:
WASHINGTON -- The Obama administration scrambled on Friday to defend major elements of its plan to overhaul the nation's financial regulatory system in the face of significant criticism from lawmakers, the financial services industry, and even senior regulators whose authorities would be eliminated under the proposal.
A turf war among some of the most powerful regulators in Washington, which has played out largely behind the scenes in the last few months, burst into the open at a House hearing. It featured disagreements over two cornerstones of the administration's financial regulation plan -- a new consumer protection agency to take over the functions now performed by the Federal Reserve, and a greater role for the Fed in overseeing large institutions that could pose systemic risks if they become troubled....
continued @ Regulators Spar for Turf in Financial Overhaul,
by Stephen Labaton for the July 25 New York Times.
"Your Government At Work"
And I thought it was always about the little people, not the power of those in power.
July 25, 2009 12:17 PM | Reply | Permalink
Well what do you know, that just happens to be how I always thought of you, a naive earnest lad wandering innocently around TPM....
July 25, 2009 1:19 PM | Reply | Permalink
:-) Good one! :-)
Let's drop the naivete then, and (once this turf war is over) turn our attention to those who would be in charge of "trimming the waste" from our health care system.
July 25, 2009 1:50 PM | Reply | Permalink
They covered this on NPR last night. Frankly, it is the job of these agencies to "protect their turf," so in that sense they are merely doing their job.
The question is, will Congress accept that, move on, and do THEIR job? Depends, if they use this as an excuse, you can pretty much take that to mean they are looking out for their own selfish interests, not those of the people that elected them to represent them.
I think that they know damn well that this testimony was a waste of time. Call some bank-teller into the bank office to ask if they think they are necessary, and guess what they will say. "Of course I am." That doesn't seem to stop banks from laying off thousands of tellers, buying machines, and reorganizing to become more efficient and profitable.
It shouldn't stop Congress from doing the same. For the good of the Country, not for the good of a handful of CEOs and stockholders.
More of the same is insanity.
July 25, 2009 1:02 PM | Reply | Permalink
Thanks for the NPR ref, bwak, I shall do a look see if they have it online. And yes on the protecting of turf thing--I was actually reminded of the old military base thing, where everyone in one base town is always all for shutting down the bases in those other towns, and then of course, when sausage gets made, nobody's base is shut down, even though the Pentagon is begging Congress to shut some down.
July 25, 2009 1:24 PM | Reply | Permalink
It was on Marketplace, sorry.
I was thinking of this comment
Link: http://marketplace.publicradio.org/display/web/2009/07/24/pm-regs/
July 25, 2009 2:10 PM | Reply | Permalink
It was a good story. I forgotten it was on "Marketplace" and not ATC until you remidned me.
Barney Frank sure lived up to his last name when he called 'em on it too.
July 25, 2009 3:04 PM | Reply | Permalink
IMO the Fed is going to lose this turf-war if it drags on. The losses on their various lending programs are already piling up and Ben will have to go hat in hand to Treasury. Treasury is going to have to go to Dodd and he is under pressure with his constituents, it seems. So if the administration can't block the more serious reforms if Dodd and Frank get scared enough of voters. I'm actually feeling more optimistic about decent reforms.
As an aside, it seems that the FASB just found its balls and might be reinstating fair value accounting for all assets. That would be a huge deal, weakening the banks' balance sheets and so their clout on the hill...
July 25, 2009 1:41 PM | Reply | Permalink
And it would appear that the trust busters are getting busy as well.
Much to the dismay of the WH.
C
July 25, 2009 5:31 PM | Reply | Permalink
"Administration officials said that Mr. Summers did not take sides in the dispute but urged the two agencies to reach an agreement as they sought to balance the interests of the industry against those of consumers."
- hmmm... how do they even write this with a straight face. Even under Bush they didn't admit that they might be more inclined towards corporate interests than the interests of ... the country.
Thanks for the link, C.
July 25, 2009 6:12 PM | Reply | Permalink
appreciate the "IMO" input, Obey.
July 26, 2009 2:48 AM | Reply | Permalink
As that great philosopher once said:
JESUS H. CHRIST
(blesses himself)
I found out I do have an account with the NYT. ha
Through struggle, something has got to give.
What a story, I WILL follow this one!!!
Thank you AA
July 25, 2009 3:26 PM | Reply | Permalink
And . . .
As that other great philosopher once said:
Frank T. Farmer: "Of course the old cows don't like being put out to pasture, but I can't make money on a shriveled up dry sack."
~OGD~
July 26, 2009 12:51 AM | Reply | Permalink
hhahahahaha
Between you and me OGD, I feel like a shriveled up dry sac sometimes. hahahah
July 26, 2009 1:09 AM | Reply | Permalink
So let me get this straight. While all the news is being directed toward the Cambridge Confrontation, the Fed is getting hammered by the WH...over teh weekend?!?! Coincidence? Yez. Sure.
July 26, 2009 1:28 AM | Reply | Permalink
And where do we think all the money is being sent? We are hemorrhaging money, and it is disappearing from view faster than we can list it as MIA. How?
Please Read a new book by Shelley A. Stark, Hidden Treuhand: How Corporations and Individuals Hide Assets and Money.
I posted a blog overview of this book last week.
July 26, 2009 3:26 AM | Reply | Permalink
It's all so surreal...
July 26, 2009 10:48 AM | Reply | Permalink