The Real Crisis in Regulatory Reform by ProQuest


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									    Editor’s View

The Real Crisis in Regulatory Reform
O     nce upon a time, the United States had a crisis. Our financial system collapsed; our
      investment funds were exposed as Ponzi schemes; stock prices cratered; and unem-
ployment soared. Times were grim. So the United States did what it always does in crisis,

when all other hopes have failed and no other choice remains: We put the Democrats in                          Editor-in-Chief
                                                                                                                 Matt Kelly
   The Democrats came to Washington in droves, filling Congress and the White House
                  and government agencies. They stood and told the people, “We cannot                        Managing Editor
                  let a good crisis go to waste!” The people were pleased; this crisis was a                   DeAnn Orie
                  triple-whammy doozie, and if the Democrats could leverage something
                  this severe into a wave of reforms, we’d all be in good shape.                              Assistant Editor
                      The king of the Democrats, Barack Obama, promised even more.                             Jaclyn Jaeger
                  Two agencies, the Securities and Exchange Commission and the Com-          
                  modities Futures Trading Commission, would become one. Many
                                                                                                        Director, Production & Design
                  rules would be simplified into few principles that all could under-                             Erin Lynch
                  stand. All who had business before the government—creatures called
                  “companies”—would be treated firmly, but fairly. Expectations would
                  be made clear. Punishments would be certain. And the people would                          CONTRIBUTORS
reap the benefits.                                                                               Melissa Klein Aguilar   Melissa Paschall
   Lawmakers in Washington held many hearings. Then they held more. They all talked                         Neil Baker   K. Sue Redman
about a magic genie called the “systemic risk regulator” and how important it was, al-                    James Bone     Andrew Savitz
though nobody knew what a systemic risk looked like or what its regulator would do.                      Bruce Carton    Richard Steinberg
They promised that this genie would speak for all of them, with one voice, and tell com-               Stephen Davis     Scott Taub
panies what to do, and the people were still pleased.                                                    Brian Gramm     Lou Thompson
                                                                                                        Jon Lukomnik     Tammy Whitehouse
   Then something strange happened. The Democrats all went into their secret room to                        Todd Neff    Ross Williams
write their plan for reforms, and when they came out—the reforms were exactly what the
people had seen before! The SEC and CFTC were still there, and a whole new agency, the
Consumer Financial Products Commission, was there too! This wasn’t just the same; it                             BUSINESS
was worse! Companies were confused.                       
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