The TeaParty, Libertarians, and the GOP are CORRECT: the US Government is TOO big. But they dont admit WHY. Each expansion of the Federal government has been either to provide oversight of corporations and to correct the mayhem they have created.
The right is fighting the WRONG institution.
Government isn't the problem. Flagrant violation of human rights and tax laws by Corporations ARE THE PROBLEM. Corporate Welfare. Corporate Tyranny.
This drives our military to buy more for less value and expands our military budget.
It drives our government to pass more and more regulation to try and deal with sneaky companies that skirt the law to avoid paying taxes.
Large corporations seek tax exemptions at home and shuffle their profits overseas.
Meanwhile big CEOs make 100-400 times the average wage of their employees and the US middle class gets hollowed out.
Creating more institutions within the government to provide oversight of the banking industry wont do any good if campaign finance reform and lobbying are not dealt with ASAP.
The Obama administration wants to create two regulatory agencies: one to keep tabs on potential threats to the financial system -- such as the problems Brooksley Born flagged in the derivatives market in the late 1990s -- and one to protect consumers from abusive practices by the financial services industry. In Congress, both agencies have been the subject of intense scrutiny as regulators spar over who should have which powers and Wall Street lobbyists fight to protect profits.
The Financial Services Oversight Council will "facilitate coordination of financial regulatory policy and resolution of disputes and identify emerging risks in financial markets." The council will replace the President's Working Group on Financial Markets. It will report to Congress, and its members will include representatives from the eight principal federal financial regulatory agencies.
A consolidated regulatory hub to protect consumers
The Consumer Financial Protection Agency (CFPA), as envisioned by the administration, will have wide-reaching power to regulate not only banks and mortgage companies but also financial services previously outside the purview of federal regulation, such as payday loans, personal investment services, credit reporting agencies and stored-value cards.
It would have the power to levy substantial fines -- up to $10,000 per day for some offenses -- and to prosecute financial services providers who break the rules the CFPA creates. The CFPA would be tasked with writing disclosures in standard, clear language that make financial transactions, such as mortgages, easier to understand. The creation of the CFPA will consolidate regulatory powers currently spread among several agencies.