"How Wall Street Killed Financial Reform" by Matt Taibbi
Published in Rolling Stone, May 24, 2012
Eric
Monday, May 14, 2012
Longread #72 -- How Wall Street Killed Financial Reform -- 5/14/12
Effectively regulating powerful industries is one of the single-biggest challenges facing our government. In particular, the financial industry has proven especially difficult to regulate given its international structure, its technical complexity, and its massive concentration of wealth. Over and over again, financial crises have recurred with many seemingly similar causes -- for example, asset bubbles built on rampant and dangerous speculation. After each crisis, there is an uproar and demands for change; nevertheless, efforts to reform the financial system have seemed unable to keep the industry in check. This longread helps to explain how Wall Street managed to first weaken the legislation that was passed (Dodd-Frank) and then blunt its effects once implemented. Again and again, the money in politics distorts the intended outcomes of regulation, and it is important to note that the influence is not just on politicians but also on the ability to afford an army of lawyers to delay and contest at each step of the process.
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