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What role do industry representatives have in writing a huge bill like Dodd-Frank, and the implementation of it after it passes? It was my assumption that indus
by jacoblyles 14y ago
What role do industry representatives have in writing a huge bill like Dodd-Frank, and the implementation of it after it passes? It was my assumption that industry has a big role in crafting the laws that regulate them.
- tedunangst 14y agoThis is unlikely to change as long as one side is willfully determined to remain ignorant of finance. If you want to write effective regulation, you'll need to understand the industry. Until then, the insiders will continue to run the show.
- sageikosa 14y agoTo balance that out, I would state that neither the regulator, nor the regulatee, really understands finance enough to make arbitrarily accurate predictions of consequences to their actions. They are betting that they understand how the whole market, the rest of the market, or the regulators (regulatees only need consider this) will act in response to information they may or may not possess based on analysis they may or may not be able to justify.