David White

Global Financial Performance

Now Bernanke is requesting more power from Congress to regulate banks, including investment banks. It looks like the markets are responding positively to this. The question now becomes, why hasn't the SEC done a better job of regulating the banks? It does seem that the Fed might be in a good position to achieve a better result if it had this further power. However, is this something we want a regulatory agency to be able to change on a whim? How hard is it for the SEC to regulate this area? Why have they not done so effectively (at least for this situation)?