On the new Dodd proposal, Steven Pearlstein writes:
There are so many political accommodations involving carve-outs and size limits and overlapping responsibilities that it creates exactly the kind of complexity, the opportunities for regulatory arbitrage and the lack of accountability that got us into this mess in the first place. It's worth remembering that many of the credit-default swaps that contributed to the recent crisis were originally devised by banks as a way around the old Depression-era law meant to keep banks out of the securities business, and by insurance companies looking to avoid insurance regulation.
Read the whole thing.
Principles-based regulation is the way to go on financial reform. However, that makes it even more important to upgrade the currently pathetic and inconsequential regulatory corps:
http://epicureandealmaker.blogspot.com/2010/03/poachers-turned-gamekeepers.html
A huge part of the problem is that when regulators are the ones with the policing functions, they (the ones with policing functions) now have incentive to cover up misdeeds until their term is over.
This is why we have a separation between executive and legislative branches. The executive shouldn’t be making regulatory ‘law’ it causes incentives for all sorts of problems.
Those are actually two sentences to ponder.
Those are actually two sentences to ponder.
Those are actually two sentences to ponder.
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