White House Criticizes Plan to Strip Fed's Powers

Senior Obama administration officials criticized a key provision of a Senate plan to overhaul the regulation of financial services, warning Friday that removing bank-oversight powers from the Federal Reserve would be a mistake.

The Fed "is the agency best equipped for the task of supervising the largest, most complex firms," said Deputy Treasury Secretary Neal Wolin. Stripping away those powers could prevent the central bank from gathering "timely and complete information in a crisis," he said.

Austan Goolsbee, a member of the White House Council of Economic Advisers, said the Fed should retain a central role in supervising the banking sector and that moves to merge oversight into a single agency could cause industry "nervousness."

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I think removing bank-oversight powers from the Federal Reserve is something that needs to be done. They failed to do the job that we need them to do.

Somehow I'm not surprised. They're fighting hard to keep the audit from happening too. Something has to give here.

I'd say ending the fed and returning to a gold based currency would help in the long run.