Under a policy quietly formalized in 1998,the Fed refused to police lenders' compliance with federal laws protecting borrowers, despite repeated urging by consumer advocates across the country and even by other government agencies.
So let's see, you have power, you formally and officially refuse to recognize and use it, then you say that "policymakers should" do the very thing you repudiated?
Why didn't The Fed's chair say "The Fed as a policymakerwillensure that consumers are protected from unfair and deceptive practices"?
The reason for that is simple:The Fed will do no such thing - in fact, according to The Washington Post The Fed adopted a formal policy to ignore such abuses in 1998 - more than 10 years ago!
Let's move on:
To close this important gap in our regulatory structure, legislative action is needed that would subjectallsystemically important financial institutions to the same framework for consolidated prudential supervision that currently applies to bank holding companies.
Really Ben? This is the same "framework" that has led to nearly 100 bank failures exposingdramatic and outrageousasset over-valuations! Yet despite a
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