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I just think that simply holding them accountable would be a good first step. Say what you like about Dick Fuld but he lost both his job and the majority of hi

I just think that simply holding them accountable would be a good first step. Say what you like about Dick Fuld but he lost both his job and the majority of his wealth when Lehman Bros went under. Have any banking regulators been even demoted for letting the financial system come to the brink of collapse on their watch? http://www.businessweek.com/articles/2013-09-12/where-is-dick-fuld-now-finding-lehman-brothers-last-ceo http://www.businessweek.com/articles/2013-09-12/where-is-dic...

danielweber 13y ago
"Hold them accountable" is doing an amazing amount of lifting there. Who is "them"? For what are they being "held accountable"? I do think the transition of the investment firms from partnerships to publicly traded companies was a bad move, but I have no reason to strongly believe it would have stopped the previous financial crisis. Goldman Sachs made a lot of money betting against the bubble, remember. Lehman wasn't bailed out, while other companies were. There was little rhyme or reason do which companies did and did not get saved. This wasn't necessarily bad, as it seemed that firms had gotten the expectation of a bailout and were continuing their risk-acceptance behaviors, but the collapse of Lehman is generally considered to be the immediate cause of credit drying up nearly instantly for everybody. The rulebook had changed and people snapped from way too risk-accepting to way too risk-averse.
- jackgavigan 13y ago
  > Who is "them"? The regulators. > For what are they being "held accountable"? For failing to regulate the industry properly. Basically, it boils down to this: "Hello, Mister Banking Regulator. Don't sit down. See this financial crisis here? The one where the government had to step in and bail out the banks? Well, it happened on your watch. You were supposed to prevent shit like this from happening. You're fired. Close the door behind you."

danielweber 13y ago

"Hold them accountable" is doing an amazing amount of lifting there. Who is "them"? For what are they being "held accountable"? I do think the transition of the investment firms from partnerships to publicly traded companies was a bad move, but I have no reason to strongly believe it would have stopped the previous financial crisis. Goldman Sachs made a lot of money betting against the bubble, remember. Lehman wasn't bailed out, while other companies were. There was little rhyme or reason do which companies did and did not get saved. This wasn't necessarily bad, as it seemed that firms had gotten the expectation of a bailout and were continuing their risk-acceptance behaviors, but the collapse of Lehman is generally considered to be the immediate cause of credit drying up nearly instantly for everybody. The rulebook had changed and people snapped from way too risk-accepting to way too risk-averse.

jackgavigan 13y ago
> Who is "them"? The regulators. > For what are they being "held accountable"? For failing to regulate the industry properly. Basically, it boils down to this: "Hello, Mister Banking Regulator. Don't sit down. See this financial crisis here? The one where the government had to step in and bail out the banks? Well, it happened on your watch. You were supposed to prevent shit like this from happening. You're fired. Close the door behind you."