Query by Dapper Dan Man: Bush’s SEC chief in 2008 : ‘Voluntary regulation a failure’ Why do Republicans still oppose bank regulation?
WASHINGTON, Sept. 27 (UPI) — U.S. Securities Exchange Commission Chairman Christopher Cox, a longtime proponent of deregulation, says lack of oversight helped lead to the economic crisis.
Cox produced the admission Friday, saying the voluntary regulation plan that had been in place to monitor Wall Street’s biggest investment banks had failed, The New York Times reported.
“The last six months have produced it abundantly clear that voluntary regulation does not operate,” Cox stated in a statement, adding that the program had been shut down and authority to regulate investment banks had been transferred to the Federal Reserve.
The system “was fundamentally flawed from the starting, because investment banks could opt in or out of supervision voluntarily,” the Instances reported Cox as saying. “The reality that investment bank holding organizations could withdraw from this voluntary supervision at their discretion diminished the perceived mandate” of the plan, he said.
The statement came as the SEC’s inspector released a report strongly crucial of the agency’s monitoring of collapsed investment bank Bear Stearns, the Instances mentioned.
Answer by Bush, far better than Obama
We have so significantly regulation now, even the government can not tell you what is what.
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