Statement of the Shadow Financial Regulatory Committee on The Need for More Transparency in Discretionary Financial Rescue Programs

In the midst of the current financial crisis, the U.S. has experienced numerous specific changes in regulatory rules and procedures and seen a proliferation of ad hoc and non-transparent programs. These actions have dramatically expanded the bounds of agency discretion and government control of financial institutions. Many members of the press and financial industry applauded agency heads for their creativity in acting promptly and forcefully to address emerging problems, despite the absence of evidence of the likely impacts of the policies adopted.