New Banking Regs from the Administration

Thank goodness the current bunch in Washington are on top of things! After all, they had nothing to do with the growth of Freddie and Fannie, right?

Actually, the Obama administration is talking about tougher restrictions on banks trading for themselves, limitations on total deposits (as a percentage of a particular market, or the nation) and limitations on bankers' pay agreements. Most of it sounds familiar. Even so, they'll have a tough time getting it lined up.

http://www.bloomberg.com/apps/news?pid=20601109&sid=a4OwfY2q_e9A

http://www.bloomberg.com/apps/news?pid=20601109&sid=atqWb1rpdvzY

So far, Sec. Geithner has expressed some misgivings, and Rep. Barney Frank (D - Mass.) has suggested that any reform of this type would need a very long time horizon, certainly longer than has been mentioned so far.

And it looks as though Dr. Bernanke is having some trouble getting his reappointment. He might just be the sacrificial lamb after last Tuesday's bloodbath in Massachusetts. Ted Kennedy's Senate seat is now held by a Republican -- unthinkable!

Also, a post here about the Freddie/Fannie audit that's a good read.

http://www.bloomberg.com/apps/news?pid=20601039&sid=asJ4nSY4l9Vg