U.S. financial reform keeps getting tougher on big banks — so they need to take friends wherever they can find them. Right now, that means Massachusetts Democrat Barney Frank, the liberal chairman of the House Financial Services Committee.
A good piece on financial regulatory reform over at VoxEu:
Furthermore, the bill does not address the risk of political capture. The same politicians calling now for stricter lending standards called for extended home ownership only a few years ago. The future roles of Fannie Mae and Freddie Mac are notably absent from this Bill, and neither is the issue of mortgage subsidisation being addressed. And there seems to be rather more political oversight than less. While accountability of regulators is important, the line between accountability and capture is a thin one.