Regulated banks got in trouble for loading up on securitized mortgages, a virtually unregulated industry. As they write down the value of their investments, the basic integrity of some banks is at stake. The answer is not to go back and regulate the problem industry, selling packaged real estate loans. Instead the government wants to deregulate banks.
Ready to help avoid oversight and scrutiny is the shadowy Carlyle Group, a politically connected private equity underwriter (PEU). The Federal Reserve Bank doesn't have far to go as Carlyle's corporate offices sit on Pennsylvania Avenue. Of course, Carlyle has an ex-Treasury high up to serve as a go between. Randall Quarles, Carlyle Managing Director and former Undersecretary of the Treasury for Domestic Finance, met with Fed representatives a month ago. PEU's are reluctant to give into oversight, so the Fed is looking to loosen regulations to allow new types of deals.
Banks got into trouble from investing in unregulated products, thus the answer is to deregulate banks so they can be owned by groups with lots of cash but who like to stay in the shadows. And the best way to set these new regulations is to meet with a man who oversaw domestic finance during the height of abusive lending practices. Yes, that should do the trick...(maxed out on sarcasm meter). Rather than save banks, the Bush administration is known for giving out goodies to its corporate buddies. Get ready for another Carlyle Christmas present from the feds, as ManorCare in 2007 wasn't the first, and surely won't be the last.
Ready to help avoid oversight and scrutiny is the shadowy Carlyle Group, a politically connected private equity underwriter (PEU). The Federal Reserve Bank doesn't have far to go as Carlyle's corporate offices sit on Pennsylvania Avenue. Of course, Carlyle has an ex-Treasury high up to serve as a go between. Randall Quarles, Carlyle Managing Director and former Undersecretary of the Treasury for Domestic Finance, met with Fed representatives a month ago. PEU's are reluctant to give into oversight, so the Fed is looking to loosen regulations to allow new types of deals.
Banks got into trouble from investing in unregulated products, thus the answer is to deregulate banks so they can be owned by groups with lots of cash but who like to stay in the shadows. And the best way to set these new regulations is to meet with a man who oversaw domestic finance during the height of abusive lending practices. Yes, that should do the trick...(maxed out on sarcasm meter). Rather than save banks, the Bush administration is known for giving out goodies to its corporate buddies. Get ready for another Carlyle Christmas present from the feds, as ManorCare in 2007 wasn't the first, and surely won't be the last.
