| HappySqurriel said: In an ideal system that is what regulation is ... A large portion of existing regulations are in place to protect the interests of the well connected, to appease special interest groups or appeal to important voting blocks, or to give the politician the ability to claim that they're standing for something. When you have federal, state/provincial, and municipal regulators each enforcing meaningless and often contradictory regulations, the regulations can represent a substantial burden on business while offering little in the way of benefit to businesses. |
The current regulations may not be right, but that doesn't mean that regulations on banks are a bad idea in general. More solidly enforced stability in the banks (especially in terms of liquidity) would have prevented many of the effects of the '09 financial crisis. The credit crunch would still have cost the banks just as much, but they would have been better able to pay it.
