[lbo-talk] How it should be done

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Thu Apr 3 09:14:33 PDT 2008


Doug writes:


> I've said there absolutely must be serious re-regulation so
> this doesn't happen again.

I'm curious what you would be happy with, regulation-wise. Have some examples? Some things that I think "could have stopped this from happening" are:

- Some kind of FDA-like authority over derivative product introduction?

Essentially 'consumer protection' for the 'sophisticated investor' set who are presumed to 'know better' but clearly don't. "You can't introduce that product, because it's a big pile of stinking shit!" ...?

- Capital requirements for non-bank entities? Leverage limits?

- Oversight of ratings companies like S&P and Moody's?

It's hard to see how this would go over well, but maybe there are some simpler ones I'm missing.

/jordan



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