Monday, April 02, 2012

Minding the gap...

...between regulatory chasms will never stop financial bubbles. It certainly will continue to ossify the free movement of capital. Instead of several small bubbles forming we will continue to see these massive imbalances caused by the inability of capital to quickly adjust due to regulatory over-reach.

Article from The Hill.

Federal regulators are facing opposition from business groups as they try to develop a system to ensure that large institutions do not cause another financial crisis.

At issue is how regulators will determine what financial firms deserve the title "systemically significant." Lawmakers developed the designation after the financial crisis, when a chain reaction among financial firms nearly sparked a global panic.

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