To much fanfare, Congress announced yesterday that they had passed a 2,400 page (yes, 2,400 pages!)bill that they claimed was full of financial regulations to save us all from the next Great Recession.
First of all, the bill does absolutely nothing to rein in Too Big To Fail. Remember that was Hank Paulson's justification for TARP, e.g. to save Goldman Sachs from bankruptcy.
Next, supporters of the bill claim it is full of stuff to encourage financial "innovation". Paul Volker says all those claims for innovation are absolutely meaningless. All Wall Street innovation has done is create a shadow financial industry out of sight of investors or regulators.
Finally (probably not), the backers of the bill claim that the real highlight is the creation of a new "consumer protection" agency in the Federal Reserve Bank. If you think that will work, just remember that Alan Greenspan and Ben Bernanke sat atop the Fed and watched the economy expand until it collapsed. How did that consumer protection work for you.
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