The Regulation Of Banking Regulation Essay

785 Words Oct 8th, 2015 4 Pages
Overall, the solution to this problem isn’t a matter of more regulation, instead we need better regulation. Unnecessary red tape actually benefits the “too big to fail banks” because the smaller banks can’t keep up the new rules. With that in mind, we need the proper leadership to enforce the laws that are on the books. For instance, the Justice Department received an abysmal average of 72 referrals a year from bank regulators for potential criminal charges for the period of 2006 through 2010. That’s a far cry from the 1,837 criminal case referrals that were generated by bank regulators in 1995 alone, during a period with far fewer scandals.
The influence of money in politics has certainly permeated into banking regulation. Sure, the SEC has made some very public gestures by targeting celebrities, such as Martha Stewart and Mark Cuban, but those people serve as convenient scapegoats. The agency has actually acted in ways that cover up the crimes of Wall Street. For example, an attorney for the SEC, Darcy Flynn, blew the whistle, exposing how the agency had actually destroyed 9,000 documents over 20 years from various high profile investigations. That included documents involving Bernie Madoff, Goldman Sachs’ credit default swaps with AIG, fraud cases against Bank of America, Wells Fargo, among others.
These kinds of issues should be expected considering some of the choices for leading this agency. For instance, George W. Bush’s appointment for the chairman of the SEC was…

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