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Dealing With The Inevitability Of Regulation
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KBurger
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KBurger,
User Rank: Author
1/10/2014 | 6:13:18 PM
re: Dealing With The Inevitability Of Regulation
Well, that is kind of the point of my original post. Some regulation makes sense and is justified/warranted; some is overkill or made sense at a certain point but has outlived its usefulness. Regardless, financial services always has been and will continued to be one of the most highly regulated (if not the most regulated) industry (and insurers even more so than banks), that is a fact of life. So (as you also pointed out in your feature), it's essential to manage it as efficiently and intelligently as possible, and that includes looking at it strategically to leverage as many of those efforts & activiites as possible in other areas of the business.
Byurcan
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Byurcan,
User Rank: Author
1/10/2014 | 2:12:43 PM
re: Dealing With The Inevitability Of Regulation
Unfortunately, most taxpayers, and regulators, don't really have a nuanced view of the financial system. You can't just say, the more regulation you have = more safety in the financial system. The extreme level of mindless paperwork banks have to complete hurt small and mid size banks the most, who don't have the resources to comply with all of this and also spend on innovation. At this point, most banks of all sizes spend more time on compliance than anything else.
Greg MacSweeney
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Greg MacSweeney,
User Rank: Author
1/9/2014 | 7:04:30 PM
re: Dealing With The Inevitability Of Regulation
Is there over regulation in financial services? It really depends on who you are talking to. If you ask a trader, they will say things were much better pre crisis when you could use excessive leverage, take on a boatload of risk and basically keep your fingers crossed. If you talk to most taxpayers, I have a feeling that they either don't care or prefer a financial system that doesn't self destruct every 2 decades.
chemphill
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chemphill,
User Rank: Apprentice
1/8/2014 | 9:50:49 PM
re: Dealing With The Inevitability Of Regulation
Well said, Bryan...
chemphill
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chemphill,
User Rank: Strategist
1/8/2014 | 9:50:49 PM
re: Dealing With The Inevitability Of Regulation
Well said, Bryan...
KBurger
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KBurger,
User Rank: Author
1/8/2014 | 7:43:37 PM
re: Dealing With The Inevitability Of Regulation
I really don't see the over-regulation right now -- especially since enactment of many aspects of Dodd-Frank has been stalled or watered down. But, yes, there is a tendency in all things to take the "pendulum" approach -- go from one extreme to another. It applies to regulation, policy, and, yes, business. How many times have enterprises embraced centralized IT and then a few years later shifted to decentralized models (and back again)? How many times have banks invested in branches, then decided not to focus on bricks and mortar, and then renewed their love affairs with branches? I think it's more of a tendency to manage (and think) for the near term, not the long term.
Byurcan
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Byurcan,
User Rank: Author
1/8/2014 | 2:47:19 PM
re: Dealing With The Inevitability Of Regulation
While it is true that banks should look at regulation not solely as a burden, but a chance to invest in innovative technologies, it must also be acknowledged that most regulators are career bureacrats who have no expereince in the industry they purport to regulate. While we were perhaps under-regulated before the financial crisis, the government naturally overreacted and now we are over-regulated. Unlike Goldilocks and the three bears, politicians never seem to be able to get things "just right."


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