Bank on Banking

The newest Obama bank plan involved the forming of a new entity, a single entity designed to oversee the banks. This new entity will not be designed to replace slew of state and federal agencies currently overseeing banking activities, but rather, it will be the eagle in the sky, if you will, watching everything and make sure that a bank doesn’t run to one agency over another just to get around some form of regulation.

At the end of the day, it is pretty unlikely that Congress will jump up and down in excitement at the idea, but, that said, the plan (and this is just one part of it) will not be brought o Congress until about mid June, so that gives the Obama team some time to tweak and revise as necessary. I mean it’s not the worst thing that they could come up with, but honestly, do we really think it is going to make a resounding difference in the way business is conducted, or will it end up being a larger version of the same agencies that are already out there. Perhaps the real upside is that if the market collapses again, and banks are again to blame, we will have one prominent agency there to accept the blame, because, I mean honestly, who really likes a game of he said, she said and finger pointing anyway – this will be much cleaner. Then again, I could be wrong, the agency could be approved by Congress and start sweeping up the garbage and put the neighborhood on watch – we’ll just wait and see what Obama actually brings to Congress in a few weeks.

One Guard, Many Banks