Deregulation and Market Discipline
Charles discusses the initial vision of the Graham Leach Blyley Act, which aimed to create deregulation and empower market discipline. However, the banks successfully lobbied against it, resulting in missed opportunities for effective regulation. The current Obama administration proposals fail to address the broken prudential regulatory system and the outsourcing of risk measurement to credit rating agencies.In this clip
From this podcast
EconTalk
Charles Calomiris on the Financial Crisis
Related Questions
What role did regulation play in the financial crisis of 2008?
What role did regulation play in the financial crisis of 2008 as discussed in the episode Arnold Kling on Credit Default Swaps, Counterparty Risk, and the Political Economy of Financial Regulation and the clip Greenspan's Worldview, as well as in the episode Russ Roberts on the Crisis and the clip The Collapse's Underlying Causes?
What role did regulation play in the financial crisis of 2008 as discussed in the episode Arnold Kling on Credit Default Swaps, Counterparty Risk, and the Political Economy of Financial Regulation and the clip Greenspan's Worldview, as well as in the episode Russ Roberts on the Crisis and the clip The Collapse's Underlying Causes?