NYT: Lawmakers Are Warned Against Expanding Fed’s Power
Submitted by Jim Brown on Thu, 07/09/2009 - 14:37
WASHINGTON — Two economists with long-standing ties to the Federal Reserve warned Congress on Thursday that it would be a mistake to give the Fed broad power to supervise “systemic risk” and financial institutions that are deemed “too big to fail.”
In what is shaping up as a fierce political battle that cuts across party lines, one of the central bank’s most prominent historians told a House panel that the Federal Reserve had consistently failed to recognize financial catastrophes until they were well under way.
http://www.nytimes.com/2009/07/10/business/economy/10fed.html
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