If You Ask Me: A Global Banker Reflects on Our Times
Wriston, Walter B.
Competition in Regulation
Would you be in favor of combining the three bank regulatory agencies? Why or why not?
I'd be against it, for the simple reason that every industry that's been regulated by one federal regulator has gone bankrupt over time. The number-one example, of course, is the railroads. The airlines narrowly escaped the same fate before Kahn came in and deregulated them.
Time and time again, the Federal Reserve has said such and such, and the Comptroller of Currency has taken a contrary view, causing the Fed to reexamine its original position. Competition among regulators has proven just as healthy for the marketplace as competition among private companies.
I would be fearful of the consequences of a single regulator, with no competitive pressure on it.
 In addition to their own state banking authorities, banks are regulated by three federal agencies; the Office of the Comptroller of the Currency in the U.S. Treasury Department; the Federal Deposit Insurance Corporation; and the Federal Reserve System.
 Alfred Kahn was appointed Chairman of the Civil Aeronautics Board.