Busy, busy, busy…
Yes, indeed the SEC and the Labor Department have been busy promoting changes in rules governing trading desks, bank board rooms, corporations’ financial disclosures and other Wall Street interests. The effects of these changes will be to:
· Make it easier for banks to gamble with depositors’ funds.
· Allow larger bonuses providing greater incentives for traders to take on riskier investments.
· Allow brokers to invest their clients’ funds to their own advantage rather than to the clients’
· Make the banks’ stress tests easier to beat so financially stressed banks will have an easier pass not quite 10 years ago.
These do not appear to me to be the best policies in dealing with some of the most egregious pratfalls that brought done most of the world’s financial systems ten years ago.