Reforming the Regulators Efforts to fix the finaneial services industry will be wasted without true reforms

摘要

Ever since the obama administration put forth its proposal for regulatory reform in June, a flood of alternatives have been promulgated - most recently, the 1,135-page draft legislation from Connecticut Senator Christopher Dodd. All of these proposals are flawed, however, because they focus only on what will be regulated and who will do the regulating. They fail to address the fact that the regulatory process itself needs to be reformed, without which any legislative change has no hope of achieving its objectives.rnIn the 35 years I've spent running businesses regulated by the Securities and Exchange Commission, the Commodities Futures Trading Commission, the Department of Labor and various state banking authorities, I have seen several regulatory reforms, and in each case the sequence of events has been the same. First, a calamity occurs (such as the collapse of Enron Corp.