Here’s a story about a small bank in Texas throwing in the towel after 27 years. Bank executives blame federal (and probably state) regulations for the decision. Maneuvering the ever-expanding web of federal and state regulations proved too much. They’ve had enough, and town residents have one less choice now.
In the story, regulators fire back saying they need to ensure banks don’t assume too much risk, which, they say, contributed, in part, to the 2008 financial (near) meltdown. And to be clear, too much risk means risky lending.
So, let me get this straight. Federal regulators can scrutinize bank lending to the nth degree, but our government (their employer!) can borrow trillions with impunity. (Only recently have people begun to realize the enormity of the problem).
It’s like the Boatswains are so worried over the brass tarnishing that they don’t notice the Captain steering the ship straight for Davy Jones ’s locker.