The Debate Over Wall St. Enforcement

How much enforcement is enough to adequately oversee Wall Street and the major banks? Make regulations too onerous, and firms won’t pursue potentially worthwhile investments for fear of huge legal bills if they are accused of violations. Too loose, and banks and brokers will run amok like schoolchildren when the teacher leaves the room, which is what happened in the years leading up to the financial crisis in 2008. The tension on regulation has been on display recently as the regulated are pushing back against the tough stance taken on corporate misconduct. Not surprisingly, the regulators have responded by threatening to crack down harder. Each side postures about the appropriate level of oversight, with no clear answer on whether we have too much or too little regulation. More in the New York Times here.