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The Banking Regulatory Problem -- NYT - 10/2/2008 9:48:29 PM

cloudboy

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From the NYT:

Drive to Deregulate

The commission's decision effectively to outsource its oversight to the firms themselves fit squarely in the broader Washington culture of the last eight years under President Bush.

A similar closeness to industry and laissez-faire philosophy has driven a push for deregulation throughout the government, from the Consumer Product Safety Commission and the Environmental Protection Agency to worker safety and transportation agencies.

“It’s a fair criticism of the Bush administration that regulators have relied on many voluntary regulatory programs,” said Roderick M. Hills, a Republican who was chairman of the S.E.C. under President Gerald R. Ford. “The problem with such voluntary programs is that, as we’ve seen throughout history, they often don’t work.”

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Here's the unbelievable part:

"Under Mr. Cox (head of the SEC), the commission responded to complaints by some businesses by making it more difficult for the enforcement staff to investigate and bring cases against companies."

Here the part that sounds like the IRAQ war:

"In the process, Mr. Cox has surrounded himself with conservative lawyers, economists and accountants who, before the market turmoil of recent months, had embraced a far more limited vision for the commission than many of his predecessors." (I take "limited vision" to mean non regulatory.)

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In sync here with the Bush Administration:

"Mr. Cox declined requests for an interview."

< Message edited by cloudboy -- 10/2/2008 9:51:02 PM >

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RE: The Banking Regulatory Problem -- NYT - 10/3/2008 7:23:54 AM

Termyn8or

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It's the old "letting the fox guard the henhouse" scenario.

It sounds like these politicians don't even have a Warner Brothers education, either that or they are friends with the fox. Look at the FDA, look at everything. Anyone with enough money can do whatever they want.

T

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RE: The Banking Regulatory Problem -- NYT - 10/3/2008 8:54:38 AM

cloudboy

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Its also the IRAQ WAR II on the domestic policy side of the equation.

If McCain had learned anything from the S&L crisis, its that you don't give lending institutions MORE FREEDOM and LESS OVERSIGHT at the same time. But in round II he was just plain oblivious.

Here's also fact check from last night's debate:

PALIN: "Two years ago, remember, it was John McCain who pushed so hard with the Fannie Mae and Freddie Mac reform measures. He sounded that warning bell."

THE FACTS: Republican Sen. Chuck Hagel of Nebraska led an effort in 2005 to tighten regulation on the mortgage underwriters — McCain joined as a co-sponsor a year later. The legislation was never taken up by the full Senate, then under Republican control.

< Message edited by cloudboy -- 10/3/2008 8:55:39 AM >

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RE: The Banking Regulatory Problem -- NYT - 10/3/2008 2:44:26 PM

pahunkboy