Monday, June 14, 2010

Banking Commissars

From Wikipedia:
A political commissar was a high-ranking functionary at a military headquarters who held coequal rank and authority with the military commander of the unit. Political commissars were established to control the military forces by the Communist party. No military order might be issued which did not have the prior approval of both the commander and the commissar.

Although lower-level political officers never received the same military training as commanding officers, most commissars were high-ranking party bosses and never had any military training or talent.

From the WSJ on banking regs in the financial overhaul bill in CONgress:
The presence of a diversity czar is one way Congress and the White House can intimidate these regional presidents to go along with the policies they favor. No Fed bank president will want to take the risk of being hauled before Congress to answer a report that the banks under his jurisdiction aren't racially or gender sensitive enough in their lending.
It's rather dubious how independent the Fed is from these pressures as it is. It looks to me that what incompetence there is at the Fed can be tied directly to Congressional action (google 'Community Reinvestment Act' for proof), so obviously more Congressional interference will make it better!

I wonder if this Commissar will be able to stand in for lefty environmental concerns eventually as well or if that will require a completely different Commissar. I'd imagine that it would okay to do double duty since they're already doing bank work, and it doesn't matter that they know nothing about that.

Continuing from Wikipedia:
Following the disasters of 1942, the political command was abolished.
I guess the current great recession was not a bad enough disaster; I wait with baited breath for one that is!

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