Bank Regulation Heats Up

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Some possibly disturbing news from the Wall Street Journal:

The Obama administration is backing away from seeking a major reduction in the number of agencies overseeing financial markets, people familiar with the matter say, suggesting that the current alphabet-soup of regulators will remain mostly intact.

….The administration, for example, is unlikely to call for merging the Commodity Futures Trading Commission and the Securities and Exchange Commission, an idea it had considered, these people say. It also isn’t expected to call for the Federal Reserve, Federal Deposit Insurance Corp. or the Office of the Comptroller of the Currency to cede their primary authority to supervise banks, they say….Officials worry that trying to start from scratch could ignite messy turf battles that might slow or even derail the entire process.

I’m not necessarily dedicated to the idea that a single bank regulator is an absolute necessity, but it sure seems as though a root-and-branch reform — which is a necessity — is going to require a considerable amount of consolidation.  If the Obama administration is backing off from this already, it’s a bad sign.

I’m not always in favor of these box drawing exercises.  I’m still not convinced, for example, that creating a Director of National Intelligence was a great idea.  But bank regulation in the U.S. really is archaic, and it really is counterproductive to have so many regulatory bodies that banks can choose from.  Having two or three with clearly defined mandates to supervise well-defined sectors — or possibly well-defined spheres of activity throughout the entire industry — is probably OK.  Having a few different agencies around to disagree with each other is a good thing.  But half a dozen with fuzzy responsibilities?  That better not stay on the table for long.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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