House Panel Exempts Over 8,000 Banks From Oversight - NYTimes.com
Bowing to political pressure from community bankers, the House Financial Services Committee approved an exemption on Thursday for more than 98 percent of the nation’s banks from oversight by a new agency created to protect consumers from abusive or deceptive credit cards, mortgages and other loans.
via nytimes.com
Huh?!
So here is the deal: Congress is going to pass legislation creating a new bureaucracy to protect us consumers from bad banks and credit card companies. And the first thing they do is exempt 8000 of the nations 8,200 banks from being reviewed by the new agency.
So rather than hold the existing regulators feet to the fire (did anybody in the SEC get fired for missing Bernie Madoff all those years?) they decide to do what the federal government always does - get bigger. But before they actually grow a new arm they hollow it out. This is an amazing Kabuki dance to watch.
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