David Kirkpatrick

June 17, 2010

Fed clamping down on financial sector

As I’ve written many, many times, I’m no fan of government regulation, but increased oversight is probably necessary in the financial world right now. You can’t blame the sector’s companies for seeking as much profit as possible, but the United States’ — and the world’s for that matter –economy simply can’t handle bad actors that are deemed “too big to fail.

Too big to fail should mean too big to have autonomy. Any financial institution that wants to get out from under the thumb of the Fed ought to have the opportunity to break down into separate, more streamlined units that could fail if the market so determines without taking everyone else out with them.

From the link:

The Federal Reserve is working to beef up oversight of financial companies to better protect the nation from another financial crisis in the future, chairman Ben Bernanke said Wednesday.