Politico reports disturbing news from the financial front:

The Federal Reserve stands to gain substantial new authority under financial reform legislation, despite increasing skepticism from lawmakers in both parties over the central bank’s unchecked powers over the U.S. economy.

What nifty new powerz does the Fed get?

Under the final piece of the House reform package being assembled by Financial Services Committee Chairman Barney Frank, the Fed would join seven other regulators to form an oversight council to police financial firms that threaten the stability of the banking system.

But the Fed is the only member that would be empowered to carry out the restrictions the council imposed on risky big companies — giving it more power than the other regulators, some policy experts say.

The Fed would also have the authority to perform on-site examinations of the targeted financial firms — able to barge into any of the “risky” firms and demand answers and documents, the most powerful tool at any regulator’s disposal.

Why is Barney slobbering more than usual over this piece of legislation?

Under the bill, those systemically risky firms could include entities the Fed doesn’t oversee under current law, including hedge funds, private equity firms and asset managers.

The real target is those dastardly rich people who ruined the economy with their evil profits. Of course, social crusaders Barney Frank & Co don’t want you to know that their dumb regulations designed to manipulate society (aka YOU) are the root cause of the financial crisis.

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