Academic

Fed Member Tarullo Floats Size Limitations for Banks

By Gordon Smith, Christine, Hurt, Vic Fleischer, Fred Tung, Lisa Fairfax, David Zaring

There's lots going on, TARP repayments, administration infighting, and more, but there's also new Fed member, and former Georgetown Law professor Dan Tarullo's maiden speech.  It's quite scholarly and interesting, but it is the stuff at the end that will really get the attention of the lobbyists:

Size limitations are one of those ideas that seem administrable and plausible, but that require the goring of a lot of oxen.  Getting legislation on it would be really difficult.  But it is not clear to me that the Fed couldn't do it by regulation, unless it falls under the Brown & Williamson "too big a deal to be done without legislative imprimatur" exception.  Anyway, interesting that the Fed is willing to admit that it is thinking about the issue.  FinReg21 has analysis here.

Full post as published by Conglomerate on June 09, 2009 (boomark / email).