My interview with Jonathan R. Macey from Yale Law School. His new book, "The Death of Corporate Reputation. How Integrity Has Been Destroyed on Wall Street".
My interview with Jonathan R. Macey from Yale Law School. His new book, "The Death of Corporate Reputation. How Integrity Has Been Destroyed on Wall Street".
4 comments:
Nice production Mike... rsp,
Regulation is great if it is enforced. His point of the need to do your own research and due diligence is fine for investment professionals, but the 99% have to be able to trust the system. Middle class and upper middle class folks trying to sock away some dough for retirement and leave a bit for their kids do not have the wherewithal to know how to be a counterparty.
We need to be able to trust the SEC. The Stevie Cohans of the world are essentially bribing the SEC. If the regulators will not enforce the regulations, it's time to bring back the guillotine. (metaphorically)
How can investors do their due diligence if they can't trust the reporting data of firms?
For example, I would not deposit any funds in a bank without FDIC insurance, unless I was a forensic accountant who worked at that bank. I'm not going to trust what they report. I would need to physically examine their assets and liabilities.
Furthermore, due diligence and securities regulation is much harder when regulators allow banks and lenders to make toxic trash.
Does the professor want us all to park our funds on the sidelines until firms start to behave more honest, per market demand for honesty? Does he understand that in the interim he wouldn't make it out of the city alive?
Punish fraud. Regulate for public purpose. Close the revolving door. Bar electoral campaign contributions from Wall Street firms.
If everyone had a citizens account at the government central bank and a decent civilised living pension/income for all, the private pension business could be scrapped and people moved to more productive economic activity!
If they want to save in the casino they could do that from a position of publically backed financial strength, not dependence on private Global Rentier Oligarch Plutocratic Elite, not fearing Rentier Autistic Economics. ;)
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