3/18/16 - Call to Action: It’s Time for a 21st-Century Look at Regulation
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3/18/16 - Call to Action: It’s Time for a 21st-Century Look at Regulation

Promontory Founder and CEO Gene Ludwig wrote in The Clearing House’s latest edition of Banking Perspective about the history of financial regulation and intermediation in the U.S., the growth of the shadow-banking sector, and the need to re-evaluate the current financial regulatory regime:

“Now that we’re in a period of relative calm, it’s time for us to step back and engage in the serious academic and practical work that can increase efficiencies and target where the fundamental problems reside. It’s clear we have not done that. In large part, we are likely to have missed the mark because we haven’t seen sufficient academic rigor in studying how financial regulation works or impacts markets. For decades, we have had an unfortunate tendency in finance to create regulations based on instinct and judgment, but not on the basis of testing or academic rigor.”

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