The Hero In The Financial Crisis Inquiry Commission

The hero in Paul Sperry’s new book (The Great American Bank Robbery) on the housing crisis is Peter J. Wallison, who writes in the Wall Street Journal today:

With the comment period now closed on its proposed rule, the Financial Stability Oversight Council (FSOC) is getting ready to outline the terms for deciding which nonbank financial institutions might cause instability in the U.S. financial system if they fail. As its staff works away on decision criteria, they should be offered one word of advice: stop.

The council was set up by the Dodd-Frank Act and is made up of virtually all the federal government’s financial regulators. It is authorized to use such criteria as size, interconnectedness and “mix of activities” to decide whether, in effect, a nonbank financial institution is too big to fail.

The legislation already specifies that all banks or bank holding companies with assets of more than $50 billion are automatically included in this category, but the FSOC now must decide what other financial institutions–insurance companies, financial holding companies, securities firms, finance companies, hedge funds and private equity firms, among others–are also dangers to the financial system’s stability. Under the terms of Dodd-Frank, if firms are designated as potential sources of “instability,” they will be subject to “stringent” regulation by the Federal Reserve.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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