Regulation Didn’t Break Banks; Police Don’t Cause Crime

Good comment from John Kay in the FT:

Their activities underwritten by implicit and explicit government guarantee, it is increasingly business as usual for conglomerate banks. The politicians they lobby sound increasingly like their mouthpieces, espousing the revisionist view that the crisis was caused by bad regulation. It was not: the crisis was caused by greedy and inept bank executives who failed to control activities they did not understand. While regulators may be at fault in not having acted sufficiently vigorously, the claim that they caused the crisis is as ludicrous as the claim that crime is caused by the indolence of the police. [Emphasis added]

More here.

Related posts:

  1. Taleb: Rogue Traders and Why Big Banks Break
  2. The VC Asset Class Crisis Thing
  3. A Tale of Two CNNs, or Why News Doesn’t Break on TV Anymore
  4. Brazil’s Lula Blames "Blue-Eyed Bankers"
  5. Do Bloggers Break News?