Andrew Ross Sorkin today notes that the Fed and the SEC didn’t do anything about Lehman Brothers, despite the fact that they knew full well that there were problems.
Color me happily surprised by the consumer-protection rhetoric yesterday of both Chris Dodd and Barack Obama. HuffPo has the best single overview of the bill, along with Dodd’s reasonably compelling explanation of why housing the agency in the Fed doesn’t mean it isn’t independent — and in fact helps to insulate it from the kind of regulatory capture which is endemic to regulators who are funded by those they regulate.
I attended a predictably utopian Banking 2.0 panel at SXSW yesterday; is it normal that most interesting discussion at these events tends to take place in the Twitter backchannel? Still, two interesting questions did arise, around the cool’n'webby financial services companies like Smarty Pig and Mint and Credit Karma which were on the panel: are they basically engaging in regulatory arbitrage, and are they also helping to entrench the too-big-to-fail banks in their existing market positions?
Blogging’s going to be light-to-nonexistent today, since it’s a travel day for me. But with all the renewed attention on Lehman Brothers (be sure to check out Antony’s piece on the report), it’s worth wondering what might happen to Ernst & Young, in the US, and to Linklaters, in the UK.
Kate Kelly and Dennis Berman to CNBC? — Mediabistro
The RSS debate, cont: Jack Shafer piles on — Slate
The full Lehman report — Jenner
The Breslin’s forkage fee — NYT
Was the runaway Prius a fake? — Jalopnik
NYU Law Professor Charged With Criminal Libel in France for Refusing to Take Down Critical Book Review — CIT Media Law
Many thanks to Tim Fernholz, of The American Prospect, and Taylor Griffin, of Hamilton Place Strategies, for helping me out via IM this afternoon to explain to me what on earth is going on with Chris Dodd and the financial regulatory reform bill. The Reuters headline says that talks have failed, and that Dodd is going solo, but in fact it’s not quite as bleak as that.