The problem is no one knows the true costs or benefits of the blizzard of laws, rules and penalties imposed since the financial crisis.
Four years ago, J.P. Morgan Chase Chief Executive James Dimon asked Ben Bernanke, then the Federal Reserve chairman, whether anyone had tallied their cumulative impact on lending and growth. The answer, apparently, was no, and that seems still to be the case.
Unlike with rules governing pollution and automobile safety, the costs and benefits of big new financial rules are seldom rigorously quantified. That’s a problem, because a proper accounting of financial regulations could show there are more-effective and cheaper ways to protect consumers and prevent crises.
|Source: The Wall Street Journal|