In the Wall Street Journal last week (12/24/14, Page A15, Good Medicine for Bad Bankers) Alan Blinder laid out his plans for more government regulation of banks. While seeking more regulation is not unexpected coming from a liberal like Blinder, it is the increased intrusion and non-stop zeal that is so frightening.
But at what point is enough enough? At what point do we ease into the Nanny State? Let's get back to banking. DF goes a long way to regulate banks. Some of us think it goes too far in some ways but we understand that banking is complicated these days and it doesn't hurt for government to put some curbs or brakes on riskier banking activities. After all, if government is going to subsidize or insure some bank deposits backed up by our tax money, then it makes sense that society should have some say so about banks. DF has a lot of say so. DF went through Congress and was signed by the president. There are also international accords that regulate bank risk exposure.