The SEC's Envious of a Powerful Fed

Michael Steinberg submits:Cox envy! Larry Kudlow (CNBC’s Kudlow & Company) was even bolder than me tonight in describing today’s House Financial Services Committee hearing that hosted SEC Chairman Christopher Cox and New York Federal Reserve Bank President Timothy Geithner. Geithner continued Treasury Secretary Hank Paulson’s mantra that the Fed needs to regulate anyone that has access to the discount window. Cox said "hold on cowboy; the Fed is not going to take over the world."Geithner explained that the Fed needs deep information about any financial institutions that the Fed will have to save. Such information can only be obtained by being the chief regulator. Constant monitoring is the only way the Fed can act quickly and safely to head off systemic risk in a financial emergency. Additionally, the Fed needs to monitor the money it lends to financial institutions, from the discount window or any other form.Complete Story »