Dollars and Jens
Tuesday, June 23, 2009
financial regulation
For more than a decade, banks have been restricted by accounting standards and the Securities and Exchange Commission from building capital reserves for loan losses that are likely to occur but difficult to predict.

"Banks felt under pressure to keep reserves thin," said Eugene Ludwig, the former comptroller of the currency who now heads consulting firm Promontory Financial Group LLC.
Read how Sun Trust was forced into imprudence by regulators. I think there are new regulations we should explore, but any discussion as to whether we need "more" regulation or "less" would benefit from the acknowledgement that "regulation" is not a homogeneous substance.

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