×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: Greenspan | Changes | Weaken | Fed

Greenspan: Proposed Changes Would Weaken Fed

Friday, 02 April 2010 07:56 AM

Former Federal Reserve chairman Alan Greenspan says the proposals now before Congress to overhaul financial regulation would weaken the Fed.

“My basic problem is that people don’t understand how important … the Federal banks in the districts are to the functioning of monetary policy supervision and regulation,” Greenspan says.

Greenspan says he’s concerned that if the Fed loses that aspect of its structure, the original idea of having federal banks throughout the country, rather than having one central bank on Wall Street, will be lost.

“What is in the bills, in my judgment, reverses that,” he told Bloomberg.

Greenspan believes the jobless rate will remain about the same, at just below 10 percent, for the duration of this year.

“You’re going to get a significant rise in employment,” he says, but new workers entering the labor force will modify the effect of employment increases.

As far as the overall economy goes, Greenspan appears pessimistic. “I’m very much concerned about the fiscal situation,” he says. “A billion dollars isn’t what it used to be.”

The financial reform bill that passed the House last December is far too weak on all of the key issues, says Robert Kuttner, co-founder of The American Prospect, in part because gigantic banking conglomerates will remain “too big to fail."

“There is no separation of commercial banking from investment banking or proprietary trading, nor meaningful reform of corrupted credit rating agencies,” Kuttner writes in The Huffington Post.

“The next generation of bubbles is already incubating while we are still recovering from the damage of the previous one.”

© 2022 Newsmax Finance. All rights reserved.


StreetTalk
Former Federal Reserve chairman Alan Greenspan says the proposals now before Congress to overhaul financial regulation would weaken the Fed. My basic problem is that people don t understand how important … the Federal banks in the districts are to the functioning...
Greenspan,Changes,Weaken,Fed
260
2010-56-02
Friday, 02 April 2010 07:56 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved