Regulation cannot prevent the evolution of financial

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Regulation cannot prevent the evolution of financial products. The key, instead, is for regulators to have the foresight to predict the next bubble that could bring down the entire economy and burst it in its infancy. Mr. Geithner, who went on to help President Barack Obama battle the financial crisis as his Treasury Secretary, reflected later that the current oversight regime (in the US) was a ludicrously balkanized mess . Consolidating and streamlining regulatory functions would
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have seemed logical after the global financial crisis exposed how vital signs were missed and leverage was allowed to pile up outside the traditional banking sector. However, a decade later, the Securities and Exchange Commission and the Commodity Futures Trading Commission in the US remain separate despite significant overlap in their mandate. Similarly, regulation of depository institutions remains split between the Office of the Comptroller of the Currency, Federal Deposit Insurance Cooperation and Office of Thrift Supervision. A working model of a streamlined and consolidated financial regulatory system may come from Singapore.
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  • Fall '19
  • Financial crisis of 2007–2010, Timothy Geithner

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