Wednesday, July 21, 2010

Wall Street Regulation

You probably read or heard that the Congress has just passed the Dodd-Frank bill which tries to bring Wall Street and financial interests into accountable and responsible practices. An editorial in the Wall Street Journal recently compared the reform bill to Sarbanes-Oxley of a few years ago in response to another panic and noted that the new bill is 30 times more complicated than Sarbanes-Oxley which mandated only 16 new regulations.

One Wall Street law firm announced the new bill will include 243 new rule makings.

And if anyone thinks the new rules passed by Congress will keep us from having another financial panic in the future, don't count on it. The new rules and regulations are also supposed to prevent another government bailout of unscrupulous financial manipulators. Folks always seem to find a way to get around old rules and new rules no matter how many ethics classes they may have taken in college.

The Wall Street Journal editorial was as skeptical as you and I about these new reforms. Only time will tell if the new rules and regulations actually work as intended.

No comments: