Network News

X My Profile
View More Activity

How will we know if financial reform is working?

Annie Lowrey* spent Monday at a conference on how we'll know whether financial reform is working. The answer? It's hard to say. I found Rep. Brad Miller's take to be the most convincing -- and the most depressing:

“[Reform] would be working if the banks were making a lot less money,” Miller argued. “The reality is for it to be successful it has to be a win-lose-win,” with markets and consumers winning, and banks losing. The Wall Street Journal reported yesterday that financial-sector corporate profits are near their all-time highs.

But there are optimistic signs, too. I'd just add that we need to be clear about what we mean by "working." I'm pretty sure financial reform will make it easier to deal with the next crisis. I'm pretty sure that financial reform will make it easier for regulators to spot the next crisis. I'm less sure that financial reform will do much to prevent the next crisis. There's nothing like FDIC insurance that automatically prevents the type of panic-inducing bank run -- in this case, a shadow bank run -- that we just saw. And then there are the international questions.

By Ezra Klein  | October 5, 2010; 9:05 AM ET
 
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Conferencing
Next: Stay weird, 2010

Comments

"How will we know if financial reform is working?"


we'll know!

Posted by: jkaren | October 5, 2010 9:57 AM | Report abuse

"How will we know if financial reform is working?"

if they're taking less risks because they fear the consequences of such risks. And as per Wonkbook if that's correct then at least that aspect of it is working. Others have yet to be determined.

Posted by: visionbrkr | October 5, 2010 10:00 AM | Report abuse

Post a Comment

We encourage users to analyze, comment on and even challenge washingtonpost.com's articles, blogs, reviews and multimedia features.

User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions.




characters remaining

 
 
RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company