Last year I read something along the lines of this. Some of the speculation was wrong:
-A “tight money” policy has not been embraced, actually the opposite.
-The Fed has MORE power now. In fact, so much so that H.R. 1207, Ron Paul’s Federal Reserve Transparency bill, actually has enough co-sponsors to pass the House. Clearly it wasn’t principle that led to that, otherwise it would’ve happened a long time ago, but fear. I suspect many supporting it think of it as a stopgap to save the Fed, as opposed to something that’ll popularize calls to bury it.
Anyway, that wasn’t my point. This is:
Officials with the International Monetary Fund (IMF) have informed Bernanke about a plan that would have been unheard-of in the past: a general examination of the US financial system. The IMF’s board of directors has ruled that a so-called Financial Sector Assessment Program (FSAP) is to be carried out in the United States. It is nothing less than an X-ray of the entire US financial system.
As part of the assessment, the Fed, the Securities and Exchange Commission (SEC), the major investment banks, mortgage banks and hedge funds will be asked to hand over confidential documents to the IMF team. They will be required to answer the questions they are asked during interviews. Their databases will be subjected to so-called stress tests — worst-case scenarios designed to simulate the broader effects of failures of other major financial institutions or a continuing decline of the dollar.
That was June 2008. Tommorow will be July 2009.