Issue Position: Eliminating the Regulators

Issue Position

Eliminating the Regulators

The politicians have established a vast financial regulator sector to pretend that the banks are being supervised when in reality, in the words of President Franklin D. Roosevelt, they "gamble with other people's money." We saw how well all those regulators performed in 2008. Dodd-Frank vastly increases the amount of regulation and number of regulatory bodies. This does nothing to prevent another financial collapse. But it does help two parties -- the large banks, since only they can afford the compliance costs, and government bureaucrats.

Under Limited Purpose Banking, there aren't hundreds of federal and state financial regulatory institutions. There is only one regulator, called the Federal Financial Authority with a very limited mandate, namely to verify and disclose in fine detail and in real time the precise holdings of each and every LPB mutual fund.

Fortunately, the vast majority of bank regulators will find themselves doing what the vast majority of tax attorneys, accountants and IRS staff will be doing -- looking for jobs that make a real contribution to society. I don't mean to be mean or cavalier here about people having to change jobs. I have many friends who work in these professions and have done so honorably for years. But they too recognize that spending one's life helping people or companies avoid taxes is not socially productive. Neither is calculating tax liabilities and enforcing tax collection when taxes can be vastly simplified and paid with far less personal filing.

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