Systemic Regulator Risk: Does the Fed of New York Need a Haircut?

``With the passage of the Dodd-Frank Wall Street reform legislation, many financial analysts and members of the press believe that investment banking revenues and resulting earnings are in danger, but nothing is further from the truth. The Volcker Rule and other limitations on the principal trading and investment activities of the largest universal banks do nothing to address the true cause of the crisis, namely the creation and sale of fraudulent securities and structured assets based on residential mortgages, toxic waste which was sold over-the-counter (OTC) as private placements and mostly without SEC registration. Some of the more recent vintages are actually registered!''