The heads of the independent regulatory agencies who sit on the Financial Stability Oversight Council would do well to remember that their own independence could also be invaded if a majority of their colleagues on the council had different views on an issue.
"It could be your grandmother, or mine," said the Cleveland deputy sheriff, when discussing an incident involving a disoriented octogenarian who looked lost when handed an eviction notice.
The OCC took a big step towards transparency when posted 12 engagement letters between servicers and consultants. But some of the letters are just blob after blob of blackout.
The Federal Reserve has become a huge holder of mortgage-related securities, creating tight relationships with other parts of the government and resulting in a remarkable triangle.
"It would be hard to imagine a more thorough rebuke of how America's Securities and Exchange Commission ... tries to discipline financial firms," the Schumpeter blog says of Judge Rakoff's rejection of the SEC-Citigroup settlement.
In recent years we've seen unintended consequences from the burden current regulations have put on America's biggest job creators: new public companies.
Harp II will only be an indirect help to housing. Addressing the challenges of negative equity and shadow inventory will require new thinking on the strategic use of principal reductions.
Shouldn't it be a given that an agency staffed with green examiners and tasked with enforcing new rules will communicate with banks before slapping them with regulatory orders?
