The New York Times
March 23, 2013
With all the new laws and regulations since the financial crisis, it would be easy to believe that the banking industry is safer. Unfortunately, speakers at the Federal Reserve conference at George Washington University on Friday offered a range of reasons for why that’s not the case.
First, the regulatory framework remains fragmented. Not only do we have “a dual state and federal banking charter system,” as former Representative Barney Frank told the audience of regulators, bankers, lobbyists, consultants and academics, we also have three national bank regulators, 50 state bank regulators and two derivatives regulators, not to mention different regulators for securities, broker-dealers and insurance companies. Private equity and hedge funds remain largely unregulated. It is unreasonable to expect that all these entities would communicate, not to mention work well together, to detect the next crisis…Read More