Indisputable evidence that self-regulation leads to disaster, one more example:
From McClatchy Newspapers, Apr 22/09
WASHINGTON — A Senate panel investigating the causes of the nation’s financial crisis on Thursday unveiled evidence that credit-ratings agencies knowingly gave inflated ratings to complex deals backed by shaky U.S. mortgages because of the fees they earned for giving such investment-grade ratings.
The Senate Permanent Subcommittee on Investigations will . . . introduce email records in which executives from Standard & Poor’s and Moody’s Investors Service acknowledge compromising the integrity of ratings in order to win business from big Wall Street firms.
“They did it for the big fees they got,” Sen. Levin told reporters on Thursday . . .
BC Liberals believe that commerce and industry should be managed through self-regulation. Accordingly, they now do minimal inspections and auditing of forestry, mining, petroleum and other industrial sectors. They also gutted the ability of the civil service to enforce environmental laws. Public guardians have been terminated and sent home.
We have numerous examples that prove deregulation is bad public policy, particularly in matters financial and environmental. There are zero examples showing routine self-regulation to be wise and workable public policy.
When politicians aim for deregulation, they can eliminate the departments that conduct oversight, or leave them in place to pretend that oversight continues. The Bush Administration specialized in the latter, often by appointing heads of agency who were unqualified and philosophically opposed to objectives of the organization.
The remaining employee re-purposed their activities. Apparently, at the SEC, porn helped to pass time between pay cheques.