It seems that every time folks call for more regulation, the regulations which are enacted are usurped, and written by the very folks who plan on using them to their advantage. The occupiers want more regulations on corporate executives, but really that is for the Board of Directors, and the shareholders to deal with, not the mass mobs in the occupy protests. Interestingly enough, the Franks Dobbs Bill was written by folks in the industry and their lawyers, and I doubt very much if any of those regulations will prevent what happened before.
Some even think they will ensure a future financial crisis, much the same way that Sarbanes-Oxley did not prevent a re-occurrence of corporations using shell companies to hide their losses as Enron did. In fact Lehman Brothers and Bear Stearns were doing that as well right before the 2008 collapse. It also seems that the ObamaCare Bill was for the most part written by insurance industry lobbyists, so, I wonder what the occupy protesters have to say about that?
Not long ago, I was talking with an insurance industry thinker about over-regulation in his industry. He stated to me that; “Regulation is often focused on the minutiae of contracts and not on the senior management.”
So, I asked him; are you suggesting that the government regulate the morality of Machiavellian Leadership and Alpha Males? Then you’ll just get a bunch of wimps running things, and no one will be happy with their performance. A good many insurance companies are public, the shareholder’s want results. Regulations are generally written by lawyers, which to me seems to be the most self-serving of power plays I’ve ever heard of.
In fact, I’ve been intimately involved in the advisory role for regulatory agencies creating new rules, and I’m amazed at how these agencies value the input from lobbyists, corporate lawyers, and trial lawyers engaged in making money on the entire process; past, present, and future.
He went on to add; “An issue of Business Ethics and internal control should always form an integral part of the underpinnings of a healthy company.”
Then I stated; Indeed. There are too many hijacked corporate boards these days, but I wonder if that is really the government’s job to fix, isn’t that really the job of the shareholders or owners of the company? I agree with him however when it comes to internal controls.
Nevertheless, internal controls are best handled by the Corporation itself, not the government. There are far too many unintended consequences that cost industries huge amounts of money due to silly rules and regulations often put forth by 26-year-olds in the regulatory agency sitting in groupthink committees who’ve never actually had a real job in the private sector. Further, by the time they hit 30 years old, all these in-house government agency lawyers are hired away by the very corporations they once regulated.
If we are looking for government regulations to solve the problems in corporate America, we are kidding ourselves. It might be better to just have them get out of the way. Indeed I hope you will please consider all this and think on it. If you disagree with what I’m saying, or you aren’t in the know, or you are one with left leaning thinking, and proclaim yourself as an anti-capitalist, then you can shoot me an e-mail if you’d like to debate. But I must forewarn you, you better come with details, and your thinking cap.