Back in 2009, the Fed was harshly criticized for its inability to handle the looming economic crisis.  Some, like Senator Chris Dodd, were calling for a vast reduction in the poser of the Federal Reserve.  However, that has all changed.  “Far-reaching bank reform legislation has been approved on Capitol Hill that will be signed into law on Wednesday by President Barack Obama.  Instead of being left out in the cold under the new banking law, the central bank’s sweeping authority over banks remains intact. In some cases, the Fed even won expanded authority.  ‘The Fed is the big winner among regulatory agencies as Dodd’s bill evolved over time,’ said Richard Coll, of counsel at DLA Piper LLP.  ‘History will mark this down as a major milestone for the Fed. There had never been as many major threats to the Fed’s independence and its powers, and the Fed turned them back,’ said Bob Litan, vice president for research and policy at the Kauffman Foundation in Kansas City.”

Here is a link to this interesting article: http://finance.yahoo.com/banking-budgeting/article/110126/the-feds-near-death-and-rebirth-experience?mod=bb-budgeting&sec=topStories&pos=3&asset=&ccode=

Michael