PM Lee said that it is difficult to regulate the banks more tightly
http://www.straitstimes.com/breaking-news/singapore/story/regulating-banks-tightly-not-always-feasible-pm-lee-20121008
The other extreme, which he seemed to favor, is to let the market takes care of bad behavior of the banks.
There is a middle path. The regulators can be more active in regulating the products offered by the banks. Many of the financial products are bad, and should be stopped in the first place. Paul Vocker recently said that the only useful innovation in the financial sector is the invention of the ATM. He suggested that all the other financial innovations are dubious. Link.
The Frank Dodd bill on financial regulation and protection of consumers mandate the regulators to approve plain vanilla financial products. This is a necessary step.
http://www.straitstimes.com/breaking-news/singapore/story/regulating-banks-tightly-not-always-feasible-pm-lee-20121008
The other extreme, which he seemed to favor, is to let the market takes care of bad behavior of the banks.
There is a middle path. The regulators can be more active in regulating the products offered by the banks. Many of the financial products are bad, and should be stopped in the first place. Paul Vocker recently said that the only useful innovation in the financial sector is the invention of the ATM. He suggested that all the other financial innovations are dubious. Link.
The Frank Dodd bill on financial regulation and protection of consumers mandate the regulators to approve plain vanilla financial products. This is a necessary step.
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