During the Crash of 2008, the Federal Deposit Insurance Corporation said it lacked access to need information to evaluate the risk being taken by banks which later either collapsed or needed taxpayer bailouts to stay afloat. Now regulators at the Federal Reserve and Treasury Department have given the FDIC specific, unlimited authority to examine banks. Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law and a former counsel to the Fed Board of Governors, says the agreement is an improvement in interagency cooperation, but sound bank regulation ought not be something negotiated among sometimes competing federal agencies.
“Coming on the eve of financial reform legislation passing the Senate, it serves principally to highlight the opportunity that Congress and the administration missed by their failure to make part of the new reform law a rationalization of our chaotic bank regulatory apparatus.”
Contact Cornelius Hurley, 617-353-5427, email@example.com