Andrew Cuomo’s been in the news a lot lately, since the New York AG likes to jump on whichever Wall Street bonus scandal is garnering headlines (Today it’s AIG, last week it was Merrill…. next week?).
WSJ has an update on what the new financial regulation regime will look like. Some of it is kind of predictable. More power for the Federal Reserve, more transparency, increased capital requirements and an end regulatory shopping, so that financial firms can’t just go to whatever agency regulates them the least.
Among the contentious points: how much power state AG like Cuomo will have to prosecute national banks. Offering more leeway to guys like Cuomo is one of Barney Frank’s big regulatory ideas. We’d need to hear more about the proposal, but we kind of think one Andrew Cuomo is enough. Imagine having 50 of them, all of whom want to be governors, prosecuting on the scandal du jour.
We can see why it’s controversial.