Fresh Capital Is So Close: Another Call To Modify Control Rules

The economy continues to suffer, and taxpayers' funds are apparently the preferred solution to address the financial institutions' crisis. A significant amount of private capital is also available to assist in this process. However much of that capital sits on the sidelines because of the "Hobson's" choice created by current bank control rules: an investor can either be passive, or manage its investment and become a bank or savings and loan holding company. In today's environment, where many longstanding rules are being changed literally overnight, holding company and control statutes and rules, many of which are at least 50 years old, should be modernized where they have not served verifiable supervisory objectives.