April 28, 2009 - 3:26am
On Monday at the 2009 Milken Institute Global Conference on Monday the CEO of Bank of New York Mellon Corp Robert Kelly noted that American companies are controlled today by too many regulators which could undermine the U.S. recovery. He said that the country needs a lot fewer regulators in fact.
Regulation is a subject of hot discussions today in the American society. Trying to figure out how the U.S. managed to fall into the crisis hole some critics assert that it was lack of proper control that led to the system collapse.
However, Kelly keeps to another point of view saying that the problem was that there were too many regulators on state and federal level which led to confusion about who was responsible for what. There are still other critics who claim there were no real rules to prevent risky behavior. In this regard Kenneth Griffin, the founder and CEO of $8 billion Citadel investment Group, one of the world's largest and most powerful hedge fund firms, said the regulatory agencies and their rules are solid. He noted that the problem was in that these rules were not properly enforced.
Kelly went on saying that on a national level there should be one or two watchdogs who will control the type of activities companies engage in. for instance he noted that insurance must be regulated on a national level instead of by 50 individual states. Kelly also stressed the importance of cooperation on an international level so as to prevent future crises.
Meantime, Michael Boskin, a economist and senior fellow at the Hoover Institution when asked what any future rules may look like said that the public is going overreact. He said that financial corporations including banks and hedge funds cannot plan their activity because of uncertainty. Boskin noted that authorities should stop inventing together "one-off solutions for Citi or Bank of America" and instead create an overall regulatory framework that would allow bankers to plan with more certainty.
Regulation is a subject of hot discussions today in the American society. Trying to figure out how the U.S. managed to fall into the crisis hole some critics assert that it was lack of proper control that led to the system collapse.
However, Kelly keeps to another point of view saying that the problem was that there were too many regulators on state and federal level which led to confusion about who was responsible for what. There are still other critics who claim there were no real rules to prevent risky behavior. In this regard Kenneth Griffin, the founder and CEO of $8 billion Citadel investment Group, one of the world's largest and most powerful hedge fund firms, said the regulatory agencies and their rules are solid. He noted that the problem was in that these rules were not properly enforced.
Kelly went on saying that on a national level there should be one or two watchdogs who will control the type of activities companies engage in. for instance he noted that insurance must be regulated on a national level instead of by 50 individual states. Kelly also stressed the importance of cooperation on an international level so as to prevent future crises.
Meantime, Michael Boskin, a economist and senior fellow at the Hoover Institution when asked what any future rules may look like said that the public is going overreact. He said that financial corporations including banks and hedge funds cannot plan their activity because of uncertainty. Boskin noted that authorities should stop inventing together "one-off solutions for Citi or Bank of America" and instead create an overall regulatory framework that would allow bankers to plan with more certainty.