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I remember reading in a Michael Lewis book (Big Short maybe?) that Wall Street hires from the SEC and Rating Agencies in-order to know the in's and out's better
by 0xCMP 9y ago
I remember reading in a Michael Lewis book (Big Short maybe?) that Wall Street hires from the SEC and Rating Agencies in-order to know the in's and out's better as well as get better treatment.
Hence the implication in the book that those who stay behind at the SEC and Rating Agencies are not wanted by the banks.
Seems like they're copying from those who came before them.
- maxxxxx 9y agoThat means working at the SEC is an auditioning process for big money bank jobs. Talk about conflict of interest.
- natrius 9y agoThis happens everywhere regulation exists. That doesn't make regulation inherently bad, but before you can come to reasonable conclusions about how to change things, you have to come to terms with the spontaneous order your changes will result in. You can't abolish self-interest.
- marnett 9y agoThis is statement is unfortunately true for every regulatory agency in the U.S. government. - CFPB -> all consumer corporations - FCC -> tech - FTC -> corporations spanning many industries - SEC -> finance - FDA -> big-pharma - USDA -> big-agra ...on and on and on...
- forapurpose 9y ago> - CFPB -> all consumer corporations CFPB is very new; is there really evidence of revolving door hiring going on there?
- marnett 9y agoI was more so pointing out who would be interested in which agencies for influence. They are young and invigorated. We'll have to see how they recover from their big loss on the CFPB Arbitration Rule after the joint resolution from last fall.
- adrianratnapala 9y agoIt isn't (always) about some sinister revolving door. It's just that the people who enforce regulations and the people who manage compliance at regulated entities are experts in the same field even when they are not the same people. Both sides can be doing their jobs entirely honestly, but still they will co-evolve in ways that make the system convenient for existing players.
- rrcaptain 9y agoYou can add as many regulations as you want, but it only perpetuates a broken system. And even the reforms that do happen are temporary, and easily undone.
- sitkack 9y agoAlso allows for favors w/o compensation.