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.