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September 13, 2011

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Kim Krawiec

Thanks for this very thoughtful post Cristie. I like this framing of “high” and “low” politics, which seems very much to characterize the pre- and post- crisis political environment of financial regulation. I agree with you that abandoning agency expertise and efficiency in favor of finely detailed legislation all the time makes no sense at all, though I do think that -- in an ideal world -- courts would do more to police such gaps and ambiguities that appear to stem from political factors, rather than expertise, efficiency, and the like (as I’ve argued with Baker here http://papers.ssrn.com/sol3/papers.cfm?abstract_id=486582).

But that's not going to happen and even if it did, would just chip around the edges. I’m with you that the reforms have to come from another avenue, such as those you propose in your Wisconsin paper, or perhaps the innovative ideas that the other forum participants have put forward.

Brett McDonnell

Great post--these are some of the right questions. But we keep circling around who to bring in to provide counters to industry groupthink. Consumer organizations are one possibility, but there's not a lot out there, and we should worry about who is in those groups. Dan's post and writing on state insurance regulation has both encouraging and discouraging cases. The other obvious possibility is academics. We should worry about our own rent-seeking in advocating that, though.

Erik Gerding

There is the Eliot Spitzer model of a policy entrepreneur. Okay, okay, he is not an attractive example.

But consider how many talented litigators go to work in federal prosecutor offices (like the SDNY). If they do a good job, they get a psychic reward and help their long term career.

Erik Gerding

And I highly recommend Cristy's Wisconsin piece:

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1525645

It is one of those pieces I said, "Damn, I wish I wrote that."

GClub

The truth is that, I haven’t been with this webpage in a long time nevertheless it was another joy to see It’s such an important topic and ignored by so many, even professionals. I many thanks to help making people more aware of possible issues.Great stuff as usual.

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