The Day Of The Regulator Dawns But For How Long?

The 1980s, in many ways, was almost as much a regulatory debacle as a financial one. Regulators were not the main cause of the collapse of hundreds of savings and loans, banks, insurance companies, and brokerage houses. But few observers would dispute that regulators often were lax in supervising these institutions, slow in spotting problems, and ineffectual in trying to get them to take remedial actions. Regulators also were asleep at the switch in spotting wrongdoing, which was graphically demonstrated by the Bank of Credit & Commerce International fraud and the Salomon Brothers Treasury manipulation scandal.

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