Reforms shouldn’t stop at Wall Street

By Edward Hadas
March 17, 2010

The financial industry isn’t the only one that needs reform. The Federal Reserve, which if Senator Christopher Dodd has his way will get even more authority over the banking system, needs a transformation of its own. After all, the most senior U.S. financial watchdog missed one of the biggest credit bubbles since its founding.

Winding down

March 16, 2010

Regulators need to approach the notion of resolution with resolve. To avoid the next financial mega-collapse, like Lehman or American International Group, Senator Chris Dodd's new bill for reforming U.S. financial regulation gives watchdogs powers to liquidate all big financial firms, not just banks.

An imagined future memo from Citigroup’s CEO

January 22, 2010

Suppose it is 2011 and the Volcker Act has recently passed, sharply curtailing U.S. banks' riskier activities and separating them from retail deposits. Citi's recently arrived chief executive Bob Steel, who is dismantling the group, puts out a memo to the bank's staff saying Tim Geithner has been hired as head of the bank's strategy and investor relations. Oddly, the imaginary scenario is not such a stretch.

Fed audit throws a monkey wrench

November 20, 2009

The Fed audit bill makes it a bit harder to pass financial regulatory reform next year. There are jagged policy disagreements between Frank and Dodd, as well as between Dodd and Richard Shelby, the ranking GOP member on his committee. The Fed audit amendment doesn't make agreement any easier.