Yeah. More regulation. That’ll fix it right up.


U.S. Bank Examiners Faulted for Oversight at Failed Lenders –

Nov. 27 (Bloomberg) — Treasury Department and Federal Reserve examiners should have done more to halt risky lending at U.S. banks that failed amid real-estate losses, reports by agency watchdogs show.

Ten of the 12 bank-collapse reviews released by the Fed and Treasury inspectors general this year fault oversight weaknesses including failure to limit excessive concentration in commercial real-estate loans. Examiners from the Fed, and Treasury’s Office of the Comptroller of the Currency and Office of Thrift Supervision also failed to issue enforcement orders and hold banks accountable for recommended changes, according to reports posted to agency Web sites.

Of course, the flipside of too little oversight is too much, which hinders growth, limits consumer choices, and breeds inefficiency.



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