Wall Street Sets the Rules for Regulators
“Herod: I‘ll tell you what, I‘ll be a Good Samaritan. What‘s the cheapest gun you got? Not in a case. I mean the cheapest piece of worthless crap you have in the whole miserable store.
Kid: All right. (Brings out the cheapest gun and slams it on the counter). 5 bucks.
Kid starts to put bullets in the gun.
Herod: What are you doing? Preacher here‘s got the Lord on his side. He only needs one bullet. Just one. Otherwise he might be tempted to shoot his way out of town.“ – “The Quick and the Dead.”
The current dynamics of the regulatory overhaul is a depressing development. While we’re normally quick to criticize regulators (and for good reason), we also have to admit that monetary deprivation of such agencies by Republicans, as evidenced by budget cuts for the Commodity Futures Trading Commission, transfer some blame to anti-regulatory forces in Congress. Regulators currently entrusted with the task of policing Wall Street are facing a well-funded, well-connected and politically shrewd beast.
In essence, regulators are not writing the rules for Wall Street. Wall Street is writing the rules for regulators.