Reason Foundation

Recent Research and Commentary

New At Reason: Treating Wall Street Like the Mafia

November 20, 2009, 2:23pm

Anthony Randazzo

I have a new commentary posted at Reason Online looking at how Sen. Dodd's new Agency for Financial Stability would be the financial equivalent for the FBI seeking to take down La Cosa Nostra.

Treating Wall Street Like the Mafia

Chris Dodd's Agency for Financial Stability will give too much power to federal regulators

November 20, 2009

Anthony Randazzo

Dodd’s plan for overhauling Wall Street regulations, released last week, includes a proposed new organization: the Agency for Financial Stability (AFS). This new regulator would be tasked with identifying and addressing “systemic risks posed by large, complex companies as well as products and activities that can spread risk across firms.” This represents one piece of the most extensive proposal to reform financial services regulation—topping even the ridiculousness of the Obama plan and Barney Frank plan. Which is saying a lot.

Don't Let Banks Keep Disguising Risk

November 20, 2009, 10:24am

Anthony Randazzo

Ironically, both ideas for creating a systemic risk regulator are dangerous to the health of the financial sector. For instance, the ABA is attempting to persuade Congress that the safety and soundness of the banking system will be protected if a systemic risk regulator can prescribe accounting disclosures for financial companies. Investors will assume that the accounting standards they employ are designed to mask risks.

Worse Than Taxes

The real burden of government is the spending level

November 19, 2009

John Stossel

Hidden taxes are more pernicious because they disguise what we pay for government. We blame merchants, not our legislators, for the high price of gasoline, liquor, cigarettes, and phone calls, but the money goes to the political thieves.

Congress Plans "Too Big To Fail" Witch Hunts

November 19, 2009, 11:18am

Anthony Randazzo

Before long, the witch hunts, partially to exact vengeance for the financial crisis, partially out of of political ideology, will start. And the meantime, the threat of having the government gunning for the overly successful will be sure to be a disincentive to growth.

GAO: Stimulus Program Has Significant Reporting Problems

November 18, 2009, 4:30pm

Samuel Staley

The lack of reporting reliability for the stimulus program points to the fundamental flaw in the program to begin with: no one really knows what a job "saved" or "created" is, let alone how to report it.

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