Federal Reserve ‘Embeds’ Employees in Banks
More efficient regulatory endeavors will reduce the kind of financial crises that have been prevalent throughout the history of modern capitalism. Only more and better government regulation is the answer.
Of course, the regulatory answer to big businesses excesses has not worked in the past and there is no reason why it will work in the future. Every regulation is actually a price fix that further distorts the marketplace and transfers wealth from producers to those who do not know how to produce. Nonetheless, this dominant social theme rolls on. Every time there is a financial setback, the US government and its adjunct enforcer the central bank (Federal Reserve) gains more power. This goes for the rest of the Western world, too.
Now regulations are not enough. Regulation is to be abetted by physical presence. But will it really help if Federal Reserve employees work in the same building as the banks they are supposed to regulate? According to the Wall Street Journal, these embedded regulators will be much more focused than previous regulators. They will eat lunch at the company cafeteria and have unprecedented exposure to company paperwork. Here’s some more from the article:
And now… the rest of the story. …..
Harold
