Kroszner takes point as Fed shifts

0 Comments | USA TODAY, June, 2008 | by Sue Kirchhoff, USA TODAY

W

ASHINGTON -- When Randall Kroszner came to the Federal Reserve Board of Governors from the University of Chicago in 2006, a watchdog group warned of his "contempt" for government regulation, and some academics termed his muscular free-market theories out of the mainstream.

So much for economic forecasting.

In the past year, Fed Gov. Kroszner has been the point man as the central bank, in response to the housing and financial market meltdown, has crafted the most sweeping consumer-protection regulations in its modern history: It has proposed wide-ranging national standards for tens of thousands of mortgage lenders and targeted unfair and deceptive credit card practices.

Kroszner has also worked with lenders, loan servicers and non-profit...