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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]You know for those shouting more regulation, regulators can always ignore what they regulate.

Remember Sheila Bair before Indymac Bank went poof?

Remember the SEC browsing porn all day and ignoring the Bernie Madoff debacle?

Congressional democrats and Franklin Raines telling everyone there is no problem before the subprime mortgage crisis of 2008?

Wachovia? Lehman? The S&L crisis and how congress played dumb with the Keating Five?[/quote]

Banks are subject to thousands of Federal Register pages of regulation.  Wouldn't be surprised if it is tens of thousands.  It is not hard to see how the basics of running a bank well could be missed given the massive amount of potential compliance pitfalls.[/quote]

Most of the regulations are simple requirements to make sure they have sufficient reserves, don’t have them in excessively risky investments, and don’t defraud their shareholders or customers. Regulations did not cause this. The bankers and the VCs did this to themselves. [/quote]

You are clearly not a banking lawyer.  There is nothing simple about the complex of rules they are subject to and they are rife with conflicting incentives.  And there is an entire separate body of consumer regulations, and AML/CFT requirements.[/quote]

DP - I'm no banking lawyer but it should be crystal clear that the highest-priority, and inviolate incentives and guiding principles should be fiduciary responsibility and minimizing risk for those whose money they hold.  If a bank can't even get that right then they have no business existing.  If any banking lawyer is confused on that, they should go into a different line of business.[/quote]

Almost all the rules are predicated on requiring good faith practices from an industry with a history of systemic bad faith practices. [/quote]

Yeah, current financial regulation is a distinctly ‘faith-based’ initiative.[/quote]

I think you forgot the /s.[/quote]

Actually, I am dead serious. It’s largely hokum.[/quote]

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