No, the standards weren't "watered down," media hype notwithstanding. But the Basel Committee is considering a complete pass for banks with government lifelines. This would enshrine "too big to fail."
A new paper dredges up a tired argument against the Community Reinvestment Act, which played an important role in sustainably expanding home lending to many Americans. Let's move on already.
If a regulator overreaches its stautory authority, fails to adequately weigh costs against benefits or tries to hold the bank to arbitrary or capricious standards, you've got a case.
The ill-conceived tax act is in direct conflict with many foreign laws, and would be another hammer blow to America's fragile economy since it would dramatically reduce foreign investments.
Regulatory changes to the 1099-B, 1099-K and 1042-S forms, intended to help reduce the $450 billion tax gap, will make it much more difficult to avoid penalties and tricky customer service issues.
Giving regulators more levers to pull and buttons to push with respect to the financial system only creates a false sense of security. The new regulatory powers come with few meaningful accountability checks.
Some feel the looser standards will have a positive effect on the economy, while others argue the easing simply represents the latest example of regulators giving banks their way.
