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The tension between Wall Street, Main Street and K-street has been severe ever since the National Banking era got underway in the 1860s, and probably earlier. We’ll detail some of those tensions in the future.

In the meantime, courtesy of the folks at Division of Labor, here is a story of how bank regulations “help” small businesses.

In July 2010, the FDIC slapped Main Street with a 25-page order to boost its capital, strengthen its controls and bring in a new top executive. Regulators also said the bank was putting too many eggs in one basket. Mr. Depping says regulators wanted the bank to shrink its small-business lending to about 25% of the total loan portfolio, down from about 90%.

Sounds prudent right? However the bank was set up for the sole purpose of making small loans to local businesses. No commentary today and I encourage you to think of ways the regulators could be more helpful (if at all), we are headed out to Schoodic Point for a hike and a paddle.

2 Responses to “Regulations, Wall Street and Main Street”

  1. Harry says:

    Well, I will weigh in and say I am appalled, about the bank story, not that winetrrcow is hiking over rocks scraped by glaciers in the last great ice age. Have a great time, herd.

  2. Rod says:

    After cutting spending by abolishing the Department of Agriculture, why not move the displaced meat inspectors over to the banking industry and assign two meat inspectors per bank branch to review loan applications. “Prime” would take on a whole new meaning.

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