October 2, 2008
Government legislates. Regulators apply the resultant regulation. Financial institutions are expected to comply with the regulations, with particular responsibility falling upon supervisory boards and non-executive directors.
The blame game between them resolves nothing and any system has to recognise the greed and moral limitations of human nature. What needs further examination, however, is the relationship between those who govern, regulate, supervise and are supposed to comply. To what extent do their leaders belong to the same politico-social class? Could it be that there is a laxness in the system influenced by the revolving door between politics and finance in most countries and the close relationship between the people involved?Author : Stanley Crossick