The federal regulators in charge of protecting the entire banking system have come across a recipe for reducing financial mayhem: increasing the number of cops on the street. In the last five years, according to the Wall Street Journal‘s Aaron Luchetti, the number of Federal Reserve “field examiners” — inspectors who literally work inside the bank they supervise — has increased by 40%. (The Office of the Comptroller of the Currency, another regulating agency, has another 500 embedded watchdogs.) The increased scrutiny means that top banks — J.P. Morgan, Goldman Sachs — could soon be dealing with 35, instead of 20, nagging feds at a time. [WSJ]
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