5 ms·
By what measure has it been decreasing? I never heard of laws being removed or sunsetted just new legislation added on top of existing framework. Maybe some of
by bko 4y ago
By what measure has it been decreasing? I never heard of laws being removed or sunsetted just new legislation added on top of existing framework. Maybe some of it counteracts existing laws but the complexity is the problem. Or maybe number of regulators? What was the last time a regulatory agency was disbanded rather than a new one added (e.g. consumer protection bureau). Or number of employees in regulatory bodies, or budgets. Its tough to find a metric that says regulations have decreased.
I think the regulations add a false sense of security. If it's highly regulated like the financial industry people just follow the regulations and think that's enough. Investors don't care and assume correctly any mess up at the bank with be bailed out. Less regulated industries tend the have more savvy buyers because you know there won't be a backstop
- deleted 4y ago[deleted]
- EFreethought 4y agoThe Economic Growth, Regulatory Relief, and Consumer Protection Act exempted banks with less than $250 billion in assets from most of the Dodd-Frank Act. They no longer had to have stress tests and it lowered liquidity levels. Under Dodd-Frank, the level was $50 billion. So far all four bank failures that have made headlines recently (Silvergate, Silicon Valley, Signature and now First Republic) were all under the new threshold. I think Silvergate was under the old threshold as well, but that still leaves 3 out of 4 that could have been prevented if Dodd-Frank were left in place. Also: "new legislation added on top of existing framework" can result in less regulation if the new legislation nullifies or repeals or (in this case) exempts some participants from current regulations.