Does Congress Really Want to Regulate Wall Street?

More than one year after the financial collapse, Senate Banking Chair Christopher Dodd formally released a proposed financial reform bill, entitled “Restoring American Financial Stability.” The bill intends to create three new independent agencies: the Consumer Financial Protection Agency, the Agency for Financial Stability and the Financial Institutions Regulatory Administration. It intends to create a […]

Read the full article →

Is it Time to Regulate Hedge Funds?

Banks are essential (but troublesome) institutions that keep checking accounts for depositors, but only hold a fraction of deposit liabilities in reserve to pay for checks. Normally, 15 cents on the dollar is adequate reserves for banks because those writing checks will about equal to those making deposits. To ensure banks have enough reserves to […]

Read the full article →