Punching Stupid and Evil in the Face Since 1986!

"We are on strike, we the men of the mind. We are on strike against self-immolation. We are on strike against the creed of unearned rewards and unrewarded duties."-John Galt

Saturday, March 20, 2010

Yeah, let's let the Fed continue to screw stuff up....

This morning at a speech to the Independent Community Bankers of America's meeting in Orlando, Fla Bernanke made it clear he believes the Treasury should retain it's oversight powers on small banks.
Federal Reserve Chairman Ben Bernanke made a fresh pitch Saturday to retain oversight of small banks, contending that what the Fed learns from that role helps it assess the overall health of the entire U.S. financial system.
WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke made a fresh pitch Saturday to retain oversight of small banks, contending that what the Fed learns from that role helps it assess the overall health of the entire U.S. financial system.

Bernanke, in a speech to the Independent Community Bankers of America's meeting in Orlando, Fla., argued against a Senate proposal that would scale back the Fed's banking duties. Close connections with community banks give the Fed a better understanding of the nation's financial risks, including problems in commercial real-estate and small-business lending, according to Bernanke's prepared remarks.
Of course it is clear the government would like to keep their fingers in a little piece of every one's pie these days. The Obama administration has been pushing for more oversight and involvement of the Treasury in banking for some time now. The logic is the reckless policies and lack of oversight is what caused the current financial crisis we have been fighting against for the last couple of years. Unfortunately, while bad investment and poor lending policies did contribute-most of those situations occurred precisely because the government got involved in areas they had no business tampering with.

This Administration has time and time again pushed the straw-man of "too big to fail" as their impetus to continue to be involved in private enterprise. So, what is the logic behind maintaining and possibly expanding their role in small banks?
The Obama administration has supported a broader supervisory role for the Fed.

Legislation passed by the House to overhaul the regulatory system wouldn't trim
the Fed's banking duties. President Barack Obama, who used his Saturday radio
and Internet address to back a financial overhaul, cited large banks that "engaged in reckless financial speculation without regard for the consequences --- and without tough oversight."
Notice he doesn't really give a reason for staying involved with the small banks. The only possible reason is to then have a hand in all lending everywhere. The Federal government wants to again direct banks as to who, what, when and where banks are sending that money. It would not be a far leap to see them demand that those who are not worthy be allowed to borrow money regardless of ability to repay.....oh wait........