Complexity is the enemy of accountability.
By that standard, Chris Dodd’s new financial regulation reform bill may wind up making government less accountable for financial stability rather than more. It contains, by our count, seven new bureaus, offices, councils, or committees. In addition, it calls for at least three new “studies” by government panels.
The new bureacracies:
- Consumer Financial Protection Bureau
- Office of Financial Literacy
- Financial Stability Oversight Council
- Office of Financial Research
- Office of National Insurance
- Office of Credit Rating Agencies
- Investment Advisory Committee
The new studies:
- Financial Stability Oversight Council will study the Volcker Rule
- Office of National Insurance will study ways to modernize insurance regulation and provide Congress with recommendations.
- The bill mandates an annual assessment of the SEC’s internal supervisory controls and a GAO study of SEC management.
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