That expletive-laced tirade from Tim Geithner last week? It didn’t go over so well.
The regulators he ordered to fall in line on Obama’s reform plan are now publicly rebuking him. Most notably, Sheila Bair.
Reuters: Disagreement within the Obama administration over reshaping U.S. financial regulation flared on Tuesday, with top bank regulators defending their turf against key parts of a plan to overhaul bank supervision…
“We do not support the administration’s proposal to establish a new agency, the National Bank Supervisor, by eliminating the Office of the Comptroller of the Currency … and the OTS,” John Bowman, acting director of the OTS, told the banking committee.
“The OTS does not support the provision in the administration’s proposal to eliminate the thrift charter,” he added.
FDIC Chairman Sheila Bair voiced support for merging OCC and OTS, but resisted more bank oversight centralization.
“There is a profound risk of regulatory capture if you collapse it all into one agency,” Bair said. “We think having multiple voices can actually strengthen regulation.”
We get the impression that we’re headed for a public Geithner-Bair showdown.
As far as we’re concerned, it can’t come soon enough.
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