Regulations, Who Needs Them? Banks.

JPMorgan Chase’s surprise announcement on Friday that it had accidentally dropped $2 billion down the derivatives sewer returns the issue of Wall Street regulation to the front of the political debate and raises the question of why, five years after a massive financial collapse, we haven’t prevented banks from risky trading.

Though regulatory reform seemed like a no-brainer after the 2007, any hang-’em-high sentiment was first diverted by a need to salve serious economic wounds, which turned discussion onto the size and nature of stimulus packages rather than increasing regulation. Then along came the Tea Party, which viewed as treasonous any word containing letters that could be used to spell government, and suddenly the idea of regulation of any kind was anathema to midterm voters. Somewhere in there, Congress passed the Dodd-Frank regulatory bill, which was so defanged by the time it was completed that many wondered if it would have any bite on the financial system at all… Read More

Follow: Evan McMurry @evanmcmurry  |  PoliticOlogy @OlogyPolitics

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