There is a government agency that has no limit on the growth of its budget. It gets its budget directly from the Federal Reserve, not Congress. Starting in July this Agency’s budget, which right now is estimated to be $158 million, will be funded entirely through assessments — also known as taxes — on bank-holding firms with consolidated assets worth at least $50 billion.
What kind of agency is this? Is this a new type of spy agency? Or perhaps is it a new part of the Department of Defense? Is it the agency that will replace NASA? No it’s none of the above. This new agency, The Office of Financial Research, or OFR for short, was created by the Dodd-Frank financial services overhaul that President Obama signed into law in July 2010. And what you ask is this agency’s mission, that it requires an unlimited budget? The agency’s official mission is to collect financial data and funnel it to another Dodd-Frank creation: the Financial Stability Oversight Council. These agencies were designed with the idea of preventing another systemic shock of Lehman Brothers magnitude.