Because we know you for the free market lovers that we are, we are certain you share our concern about any increase in power for the Federal Reserve. The news that the present administration plans to significantly broaden the Fed's reach will have, likewise, filled you with a creeping dread. Fortunately, we have discovered that there is nothing at all to fear: The Fed will be hiring really, really smart people from now on. (Oh, and there will be more stress tests).
The Federal Reserve plans to strengthen its examinations of banks' lending practices and financial health with new teams composed of experts in everything from law to economics and markets.
Fed Governor Daniel Tarullo outlined the step in testimony to a Senate Banking Committee hearing in Washington today. The overhaul, which would make reviews more uniform across the banking system, builds on the stress tests the central bank completed on the biggest 19 banks in May, he said.
Definitely, absolutely smarter than the people over at Treasury.
Fed to Strengthen Bank Examinations With Expert Teams [Bloomberg]