In light of renewed discussions about a Consumer Protection Agency and the ongoing disputes between US House Financial Services Committee Chairman Barney Frank and members of the senate, let us revisit an earlier article by the New York Times (Struggling Over a Rule for Brokers):

While most of the debate about financial overhaul legislation has focused on the impact on how big banks do business, one piece that would affect consumers directly has received little public notice: a requirement that stock and insurance brokers act in their customers’ best interest. And that provision may not make it into the final overhaul plan.

It's easy to see why people have such extremely negative attitudes toward government – when we watch a bloated, broken behemoth like the Federal Deposit Insurance Corporation (FDIC) in action. While most organizations look for ways in which they can perform their functions better, the FDIC spends its time looking for ways to perform its duties in a worse manner...and when you're already doing as lousy a job as the FDIC, it takes a lot of effort to get worse.

Let's review the performance of the FDIC over the last two years. After assuring the world that it had more than enough capital to weather the failures of large numbers of U.S. bank, the FDIC quickly burned through those billions – and now operates with a balance sheet drowning in red ink.

I am constantly amused by those people who claim there is some vast "conspiracy" in this country when it comes to banks, balance sheets, and fraudulent lending and accounting.

There is no conspiracy.