The big news this morning is that the Bush Administration is bringing out the big guns. Sort of.
In sweeping regulations, the Bush Administration offers a bunch of proposals designed to regulate the entire financial system. But will it actually be useful? The New York Times reports on the latest in Wall Street regulation:
Hedge funds and private equity firms, which have enjoyed freedom for
government oversight for years, would finally fall under federal watch.
But that oversight would be minimal, enabling the government to do
little beyond collecting information until a widescale financial crisis
has already occurred.
Additionally, the practices linked to the current subprime mortgage crisis would not actually be affected.
So, is this regulation for the sake of looking like they’re doing something? It sort of seems that way. At least the “too little, too late” mentality has remained constant…