Top 126 Regulators Quotes & Sayings - Page 3

It's not enough say, "Look, bankers were immensely greedy and that they committed lots of frauds." I mean, that's not, they were set free, that sort of particular proclivity in human nature was set free to do its best and its worst. Politicians and regulators are consumers of ideas. They never have any ideas of their own, it would take too much like hard work to develop ideas, you get them off menus and you pick the ones that suit you. Financial services were set free to go beyond their rightful place, a place by which they have been restrained in the past.

In a world of businessmen and financial intermediaries who aggressively seek profit, innovators will always outpace regulators; the authorities cannot prevent changes in the structure of portfolios from occurring. What they can do is keep the asset-equity ratio of banks within bounds by setting equity-absorption ratios for various types of assets. If the authorities constrain banks and are aware of the activities of fringe banks and other financial institutions, they are in a better position to attenuate the disruptive expansionary tendencies of our economy.

Under the constitution, there was never meant to be a federal police force. Even an FBI limited only to investigations was not accepted until this century. Yet today, fueled by the federal government's misdirected war on drugs, radical environmentalism, and the aggressive behavior of the nanny state, we have witnessed the massive buildup of a virtual army of armed regulators prowling the States where they have no legal authority. The sacrifice of individual responsibility and the concept of local government by the majority of American citizens has permitted the army of bureaucrats to thrive.

Perhaps more to the point for TBTF (Too Big To Fail bank), if a SIFI (Systemically Important Financial Institution) does fail I have little doubt that private investors will in fact bear the losses-even if this leads to an outcome that is messier and more costly to society than we would ideally like. Dodd-Frank is very clear in saying that the Federal Reserve and other regulators cannot use their emergency authorities to bail out an individual failing institution

The global financial crisis is a great opportunity to showcase and propagate both causal and moral institutional analysis. The crisis shows major flaws in the way the US financial system is regulated and, more importantly, in our political system, which is essentially a bazaar of legalized bribery where financial institutions can buy themselves the governmental regulations they want, along with the regulators who routinely receive lucrative jobs in the industry whose oversight had formerly been their responsibility, the so-called revolving-door practice.

Government barriers on Business For example, the Endangered Species Act prevents 'disturbing the habitat' of the spotted owl. That has restricted 4.2 million acres of forest from development, leading to the loss of 30,000 lumber-related jobs and the annual loss of 1.1 billion board feet of lumber. This has driven up the cost of houses by at least $4,000 each. In addition, regulators ordered a Kansas City bank to install a Braille keypad on its drive-through automatic teller machine, presumably to aid any blind drivers. The list goes on and on.