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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][twitter]https://twitter.com/TristanSnell/status/1635411657567641600[/twitter]

How about we learn from history?[/quote]

I’m not a Trumpian or a supporter of loose regulations, but regulations aren’t meant to create a perfect system where nothing goes wrong. [b]Regulations are burdensome and they require a lot of time and money to fulfill them, and a lot of taxpayer money to hire analysts to review them[/b]. There’s nothing inherently wrong with saying, the overall banking industry is positioned well, let’s subject the big banks to these regulations and let the ones who pose less systemic risk not do them if they don’t want to.

In this case, a couple of poorly managed banks failed. The FDIC stepped in and did their jobs and the taxpayer will likely not pay a cent.[/quote]

I bet it costs a lot less than the various bailouts and corresponding economic losses.[/quote]
+1 In the IT world, we have internal "regulations" for a reason. It's burdensome; it's annoying, but it's there for a reason, namely to safeguard the internal infrastructure, financials, and customer information.

Similarly, the banking industry absolutely needs regulation for all the same reasons.[/quote]

You said it yourself.  In the IT world, the "regulations" are internal.  Banks are required to have internal policies and procedures for all manner of things, including risk management. I don't suppose the IT world would welcome regulations via law or a federal oversight agency.

That said, regulation can be very much a positive good for banks, particularly in light of the government guarantee on insured deposits.  Banks accept that that insurance comes with government regulation.  But all regulation is not created equal.  Some of it is very useful, while parts really are not and are counterproductive.

This is not a question of more regulation but better and smarter regulation with a bonus if it is incentive compatible.[/quote]

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