"For us let it be enough to know ourselves to be in the place where God wants us, and carry on our work, even though it be no more than the work of an ant, infinitesimally small, and with unforeseeable results."
-- Abbé Monchanin

Tuesday, July 17, 2012

Self-regulation for Financial Institutions?

Libor Manipulation Probed by Five State Legal Offices 

Visa, MasterCard in $6B credit card settlement 

Wells Fargo $175M discriminatory lending settlement 

These headlines are a consequence of government regulation of financial institutions.  If it were not for such governmental regulations and their enforcement, we would not be subjected to such headlines.  Business practices of financial institutions would not change, but we would not be forced to learn about these practices.  We could maintain our bliss.

So, if you dislike reading such headlines and seeing the bottom line of big financial institutions suffer due to punitive government actions, join the cry by the leaders of finance for less government regulation and fewer rules imposed upon these institutions.  They should be allowed to self-regulate themselves.  Trust them.

And if you follow their logic regarding self-policing, you should support cutting government budgets by doing away with our police, prosecuting attorneys, judges and prison staffs.  Let the criminals regulate themselves and keep us and our possessions safe.  Think of the tax savings we could have.  Trust them.

As for me, I’ll cry for outside regulation in both cases.  I don’t trust them.  I trust the testimony of their actions.

1 comment:

Tauratinswe said...

A further example of the fruits of self-regulation:

Senate report: Bank giant OK'd money laundering that likely funded terror

[Horribly long link to article]