The Case Against “Not Enough Regulation” Causing Financial Meltdown
The case against?
Bernie Madoff, of course. A man who bilked investors of some 80 plus billion dollars over a couple of decades knew how to fool the regulators and was not shy about passing on that information to those who worked for him.
Money quote (no pun intended):
“You know, you don’t have to be too brilliant with these guys because you don’t have to be …”
Apparently the regulation regime, which should have easily have caught Madoff, failed too because regulators got to cozy with him:
“The guys . . . ask a zillion different questions and we look at them sometimes and we laugh, and we say, ‘Are you guys writing a book?’ ” he said.
“These guys, they work for five years at the commission then they become a compliance manager at a hedge fund now.”
Yeah – we need more regulations. That’s the ticket. More. That’ll fix it.
The regulations were there – the regulators, however, failed to enforce them. My guess is that a close examination of why we ended up in the financial pickle we did had less to do with the lack of regulation and more to do with what let Bernie Madoff skate for so long – a criminal lack of oversight by regulators as authorized by law.
[ad] Empty ad slot (#1)!