Comments on: Regulatory failure datapoint of the day, Citigroup edition http://blogs.reuters.com/felix-salmon/2011/11/30/regulatory-failure-datapoint-of-the-day-citigroup-edition/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Danny_Black http://blogs.reuters.com/felix-salmon/2011/11/30/regulatory-failure-datapoint-of-the-day-citigroup-edition/comment-page-1/#comment-33670 Thu, 01 Dec 2011 19:16:33 +0000 http://blogs.reuters.com/felix-salmon/?p=11320#comment-33670 +1. Fantastic book. His other book, inventing money was also fantastic, shows what a journalist can write when he bothers to learn the basics and fact check.

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By: MikeCooper http://blogs.reuters.com/felix-salmon/2011/11/30/regulatory-failure-datapoint-of-the-day-citigroup-edition/comment-page-1/#comment-33669 Thu, 01 Dec 2011 19:11:13 +0000 http://blogs.reuters.com/felix-salmon/?p=11320#comment-33669 DEVIL’S DERIVATIVES really is a great book – not just insightful and sharp-eyed, but beautifully written. I wish more financial journalism was done so well; the only other author I can think of who writes so clearly is John Lanchester (albeit aimed much more at general readers). Anyway, regulatory capture is the least of it: Dunbar’s explanations of how and WHY the instruments were structured are consistently fascinating.

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By: SteveHamlin http://blogs.reuters.com/felix-salmon/2011/11/30/regulatory-failure-datapoint-of-the-day-citigroup-edition/comment-page-1/#comment-33666 Thu, 01 Dec 2011 16:42:44 +0000 http://blogs.reuters.com/felix-salmon/?p=11320#comment-33666 @EpicurianDealmaker: thank you for clearing up your point: that strong, knowledgeable and independent regulators are necessary and net_beneficial for the banking sector.

For I was going to remark that you seem to equate bankers with criminals and military opponents, both of which are net negatives to society, and if of sufficient size, are classified as potential destabilizing forces that threaten the state and its citizens.

But other than that, I won’t comment on your Kinsley gaffe.

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By: EpicureanDeal http://blogs.reuters.com/felix-salmon/2011/11/30/regulatory-failure-datapoint-of-the-day-citigroup-edition/comment-page-1/#comment-33665 Thu, 01 Dec 2011 16:37:51 +0000 http://blogs.reuters.com/felix-salmon/?p=11320#comment-33665 @Curmudgeon — Thank you for the kind words, but I am neither senior nor wealthy enough yet to commit career suicide as you suggest. I will continue to comment pseudonymously from deep within the belly of the Beast.

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By: JayTrader http://blogs.reuters.com/felix-salmon/2011/11/30/regulatory-failure-datapoint-of-the-day-citigroup-edition/comment-page-1/#comment-33663 Thu, 01 Dec 2011 16:19:57 +0000 http://blogs.reuters.com/felix-salmon/?p=11320#comment-33663 @epicureanDeal – You are correct. I did not mention that Americans are suspicious of regulators and policymakers in general. Unfortunetely, this is self evident.
Where we diverge is that Americans don’t necessarily feel that regulators are incompetent are plain dumb, but that they are all captured by the industry that they are supposed to oversee. Of course we all want smart, nimble, and well paid regulators just like we want our women all to look like Heidi Klum. This is not in the cards under the current structure.

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By: Curmudgeon http://blogs.reuters.com/felix-salmon/2011/11/30/regulatory-failure-datapoint-of-the-day-citigroup-edition/comment-page-1/#comment-33662 Thu, 01 Dec 2011 16:01:09 +0000 http://blogs.reuters.com/felix-salmon/?p=11320#comment-33662 @epicureanDeal, you seem relatively reasonable, candid, and open to opposing viewpoints. You are a longtime insider, and clearly senior. Your blog seems to be relatively respected in an industry that garners little of that commodity.

Let me suggest that you shed your anonymity and speak out in favor of the financial industry that you envision. It will almost certainly be better than the one we have now.

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By: EpicureanDeal http://blogs.reuters.com/felix-salmon/2011/11/30/regulatory-failure-datapoint-of-the-day-citigroup-edition/comment-page-1/#comment-33661 Thu, 01 Dec 2011 15:39:16 +0000 http://blogs.reuters.com/felix-salmon/?p=11320#comment-33661 @KingCanute — I was not clear. Prevention is my goal, not clean up. But to do that, you need to embed skilled, knowledgeable regulators deep within banks’ trading and lending operations for realtime oversight. Banks won’t like it, but one benefit they will get is access to regulators who have a much better view of *aggregate* market behavior and trends, which will be extremely valuable to their own risk control.

@JayTrader — You are correct. Until we sever or tightly control the access of money to politics, such an idea will go nowhere. What you did not mention is the fact that Americans (everyone?) tend to be rightly scared and suspicious of smart, capable regulators. We prefer them dumb. That is a whole other issue.

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By: klhoughton http://blogs.reuters.com/felix-salmon/2011/11/30/regulatory-failure-datapoint-of-the-day-citigroup-edition/comment-page-1/#comment-33659 Thu, 01 Dec 2011 15:15:13 +0000 http://blogs.reuters.com/felix-salmon/?p=11320#comment-33659 Gee. Felix, when Ron Suskind points out that the s4b who ran the NY Fed in 2006 and turned a blind eye to The Big C’s mismanagement moved to a certain position in the Current Administration and continued shielding them from any real action, you (and Brad DeLong and several others Who Should Know Better) defend him.

Want to mark that belief to market now?

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By: JayTrader http://blogs.reuters.com/felix-salmon/2011/11/30/regulatory-failure-datapoint-of-the-day-citigroup-edition/comment-page-1/#comment-33658 Thu, 01 Dec 2011 15:15:08 +0000 http://blogs.reuters.com/felix-salmon/?p=11320#comment-33658 Who do you think funds the regulators? CONGRESS.
Who do you think is captured by the Banking Industry? CONGRESS.

What we have seen over the last 10 years is that the SEC and other regulatory bodies have gotten their budgets cut by Congress. These guys don’t regulate when they had a bloated budget.

What EpicureanDeal says on the surface is correct. We do need a smarter, more nimble, tough regulatory body to crack heads but that will never happen as the bought and paid for Congress won’t allow it. I can see it now. Congress funds regulatory black opps squad to regulate Wall Street. You actually think Congress would ever allow a government agency to do such a thing?

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By: KingCanute http://blogs.reuters.com/felix-salmon/2011/11/30/regulatory-failure-datapoint-of-the-day-citigroup-edition/comment-page-1/#comment-33656 Thu, 01 Dec 2011 15:08:24 +0000 http://blogs.reuters.com/felix-salmon/?p=11320#comment-33656 I think EpicureanDeal’s viewpoint is flawed – he wants policing instead of prevention. I would much rather have beat cops and career detectives walking the streets and understanding the neighborhood and building a relationship with the community than, as is currently the case, heavily armed cops sitting in patrol cars waiting for another call to bang heads together. SWAT teams are useful and all when the crap hits the fan, but why not just prevent crime in the first place? Why let banks still engage in all these complex transactions, when odds are they will still slip through the cracks of these highly-paid regulators?

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