Except when private regulation doesn't work.
Reader comment on: BankSimple
Submitted by Lyle (United States), Mar 20, 2010 11:23
Recall that Greenspan thought that investment banks would regulate their behavior to ensure that they survived, and he admitted that his model of the world was wrong. This is just like in general most people do regulate their behavior without commiting crimes but some don't. The issue is how to ensure that the sociopaths and others don't wreck the situation for others. For example the Lehman 105 repo deal is likely illegal even now, but self regulation and corp governance failed on this one, the board should have screamed bloody murder over it, but being Fuld's stooges they followed along like the good sheep they were. The regulators were asleep, but then investment banks were voluntarily regulated.
Note: Comments are moderated by the editor and are subject to editing.
Other reader comments on this item
[w/response] [214 words]
|ben||Mar 21, 2010 10:11|
|⇒ Except when private regulation doesn't work. [117 words]||Lyle||Mar 20, 2010 11:23|
|Let's apply this to education... [64 words]||Rich Hand||Mar 19, 2010 17:14|
Comment on this item