COMMENT
Breadcrumb trail navigation:
By Alan Greenspan
Published: March 29 2011 18:31 | Last updated: March 29 2011 18:31
The US regulatory agencies will in the coming months be bedevilled by unanticipated adverse outcomes as they translate the Dodd-Frank Act's broad set of principles into a couple of hundred detailed regulations. The act's underlying premise is that much of what occurred in the market place leading up to the Lehman Brothers bankruptcy was excess (hardly controversial) and that its causes would be readily addressed by this wide-ranging statute (questionable).
The financial system on which Dodd-Frank is being imposed is far more complex than the lawmakers, and even most regulators, apparently contemplate. We will almost certainly end up with a number of regulatory inconsistencies whose consequences cannot be readily anticipated. Early returns on the restructuring do not bode well.
You have viewed your allowance of free articles. If you wish to view more, click the button below.
Read Full Article »