Staying Put

Fed to Keep Big-Bank Oversight

After the Federal Reserve failed us last financial crisis, it looks like we will soon learn if it learned its lesson: Senator Chris Dodd will propose this week that the Federal Reserve retain regulatory control over the 23 banks with more than $100 billion in assets, says the Financial Times. Now, hundreds of state-chartered institutions are saying “me too!”: According to the Times, they also want to remain under the Fed’s eye. Importantly the Fed will have the power to wind down companies that pose systemic risks to the system; in a concession to Republicans, a bankruptcy judge will serve as a check and balance against the Fed’s new power.