The Provocateur: Bank Deregulation and the Financial Meltdown: "the problem is not merely the regulation itself. I think it is dishonest partisanship of the highest order to proclaim that a company like Merrill Lynch can't also attempt to get into the business of mortgages. I think it is a mistake to call for putting this wall back up. First, if you did, you would create a mass sell off all over Wall Street as financial services firms would need sell of divisions to meet the new law. Second, you would create even more illiquidity at a time when liquidity is the order of the day. By putting the wall back up, the very institutions that you need to get back in the market would be forbidden.
The real villain here is not the deregulation matter itself, but the government's failure to figure out a new oversight framework to deal with the deregulation. Government watchdogs like the SEC, FDIC, Office of Banks and Real Estate, among dozens of government agencies were now responsible for all sorts of new institutions. "
'via Blog this'
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