Regulatory Reform Plan 2009

With the new Regulatory Reform Plan put in place by Obama administration, it seems like the Federal Reserve, a quasi-public and quasi private entity, will have complete control over the United States banking system. The Federal Reserve has been given all rights to regulate any activities carried out in the US banking system and can take over any company they’d like.

Even though the Obama administration claims to have a special team that will work with and advise the Fed Reserve on how to carry out their operations, the reserve is unaccountable to the US Congress, in fact, they are not accountable to anyone and hence have the right to decline any suggestions made to them.

It is clear that the Obama administration took this action based on the current economic situation and to ensure complete prevention of a similar future event. They are trying to avoid mishaps such as subprime mortgages. But, “Is giving full control to the Fed Reserve really the answer? ”

In my personal opinion, President Obama should have a separate team that performs the regulatory tasks and is accountable to the US Congress on every major action they take, this allows for fairness in the system.

Even if President Obama reads this and “takes my suggestion” (no pun intended 🙂 ), the banks have to now be super careful in every action they take.

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