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Matt Levine

Levine on Wall Street: Supervising the Supervisors

Also: EU short sale disclosure, Point72's best trades, stock transfer taxes, and using Twitter to short the market after bombings.

The Fed is sorry.

Sorry about the whole being too cozy with banks thing. As penance, the Fed has "asked its inspector general to look into whether top supervisors were getting the information they needed to make their decisions," and if they "were hearing all the opinions of Fed bank examiners." Remember Dan Davies's take on bank supervision: "the biggest problem is that senior management of bank supervisors don’t have the supervisors’ backs"; the top people at the Fed tend to hear much more from the chief executives of big banks than they do from the examiners who supervise those banks.