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Banking, finance, and taxes

One Bank Regulator For One Mess

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
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The federal government is considering having one regulator to oversee the entire banking system. The mess in the industry is so great that the idea of consolidating the power to control the sector may be a good idea, but the bureaucracy behind the move is likely to be immense. Merging federal agencies is not likely to be easy and the plan will probably require Congressional approval. It will also face resistance from current agencies that do not want to lose their power bases.

According to The Wall Street Journal, “The new bank regulatory agency could prove controversial because it would consolidate the Office of the Comptroller of the Currency and the Office of Thrift Supervision and strip supervisory powers from the Federal Reserve and the Federal Deposit Insurance Corp.”

It is hard to make the argument that one agency is better than four, five, or six. The FDIC has a specialized role in the banking system as does the agency the regulates thrifts. Moving them to a new operation which will be much larger and probably more cumbersome does not solve the problems of large bank losses, low industry capital, and a future of real estate and consumer credit write-offs.

Once the banking system gets back to normal — if it ever does — the fact that the process was managed by one agency or several will not matter much.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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