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Treasury's Blueprint

A Solution in Search of a Problem

Combining the federal bank regulatory agencies is an idea that has been discussed from time to time for as long as I can remember. It hasn't happened in more than three decades, so I'm not holding my breath while waiting for implementation of the U.S. Treasury Department's "Blueprint for a Modernized Financial Regulatory Structure." Nevertheless, the concept's latest incarnation is cause for concern.

The plan calls for three regulators. The Federal Reserve would be a "market stability regulator" for the entire financial sector. The second regulator, similar to the Office of the Comptroller of the Currency, would combine all federal bank charters into one ...

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