The problem with the Fed not regulating banks, is the difficulties of the Fed seeing the complete picture and acting quickly.
There is a real danger here Congress will blunder and foil any chance the Fed has of managing the money supply.
Oh, and Dodd? He's one of the ones who caused the Fed to blunder so badly.
* * * * * J B K * * * * *
San Francisco
Bernanke, 56, has said moving the powers to another agency would make it tougher for the central bank to act as the lender of last resort and conduct interest-rate policy. Dodd, a Connecticut Democrat, has said the Fed did an "abysmal" job supervising banks before the financial crisis.
http://www.bloomberg.com/apps/news?pid=20601087&sid=ayBArJ_YleFM&pos=5
