S.E.C. Concedes Oversight Flaws Fueled Collapse

[stubtoe]

News Flash: Voluntary regulation does not work!

"WASHINGTON — The chairman of the Securities and Exchange Commission, a longtime proponent of deregulation, acknowledged on Friday that failures in a voluntary supervision program for Wall Street’s largest investment banks had contributed to the global financial crisis, and he abruptly shut the program down.

The S.E.C.’s oversight responsibilities will largely shift to the Federal Reserve, though the commission will continue to oversee the brokerage units of investment banks."

http://www.nytimes.com/2008/09/27/business/27sec.html?_r=1&hp=&adxnnl=1&oref=slogin&adxnnlx=1222538751-YCpJaqEsGEq1PpCsz3YNUw">NYT

So much for the Invisible Hand.

[TomInTib]

1. "a voluntary supervision program for Wall Street’s largest investment banks"

Fox, meet Henhouse.

Maybe I could be my own Probation Officer.

[Vincardog]

2. How is not having a "voluntary supervision program" any different than having one they ignore?

[stubtoe]

3. Good question!