Released: October 14, 2008

Both sides of the aisle see more regulation

Source: Jackie Calmes, N.Y.Times (Free Registration)

For 30 years, the nation’s political system has been tilted in favor of business deregulation and against new rules. But that is about to change, now that the government has been forced to intervene in the once high-flying financial industry to avert an economywide crash.

An expansion of the government’s role in financial markets is certain: on Friday the Treasury Department updated its recommended reforms of the existing regulatory structure, which it will leave to the next president and Congress.

Congressional leaders and both presidential candidates already have their own, more far-reaching ideas, from further restricting executives’ pay to remaking the entire regulatory structure so that it better supervises both traditional activities and newer ones like credit-default swaps that are unregulated. But the pro-regulation climate will probably spill over into other sectors.

Read Full Article: Both sides of the aisle see more regulation