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Headlines that say it all: "Goldman exec named first COO of SEC enforcement"

Fri, 10/16/2009 - 12:04pm — lambert

Why do we even need a government?

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I never expected much from Obama

By DCblogger on Fri, 10/16/2009 - 12:10pm

but he has succeeded in dissappointing me.

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Get ready to be even more disappointed

By Joshfulton.blogspot on Sun, 10/18/2009 - 6:15am

Meet the newest Commodity Futures Trading Commission Commissioner:

If you've been reading Mother Jones recently, then you already know quite a bit about Scott O'Malia. Like the fact that he once worked as a top in-house lobbyist for an energy company, Mirant, that manipulated California's market Enron-style. Or that, while on this company's payroll, he lobbied against a bill to expand the CFTC's authority to police derivatives. [...]During his recent confirmation hearing, O'Malia expressed his commitment to bolstering oversight and said he would work to "ensure the CFTC uses all of its legal authorities to curb excessing speculation and prevent abusive trading practices, including fraud and manipulation." Given his track record, there's reason to be dubious.

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www.joshfulton.blogspot.com

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I'll thank you not to presume my level of disappointment, sir

By danps on Sun, 10/18/2009 - 6:56am

Funny enough, I just posted on a couple other instances of cognitive regulatory capture.

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"Cognitive regulatory capture"

By lambert on Sun, 10/18/2009 - 8:35am

I believe it was the FT's Willem Buiter who originated that phrase (2008-05-28). Showing once again, as if it still needed to be shown, that you can often learn more from a smart and principled small-c conservative who knows their stuff than from the typical wannabe Democratic strategerist, even if they're on "your side.")

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"First they ignore you, then they ridicule you, then they fight you, then you win." -- Mahatma Gandhi

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So recent!

By danps on Sun, 10/18/2009 - 8:57am

It's not even a year and a half old. Feels like longer. The phenomenon it describes, of course, has been around forever.

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It was what the conservative movement was designed to produce...

By lambert on Sun, 10/18/2009 - 9:20am

But I would say that the complete identification of regulators with regulated -- which is not the same as corruption, being both cheaper and more effective -- is relatively recent. I could be wrong, maybe it's a periodic thing. But it seems to me to be like a spot of mildew vs. mildew destroying an entire garden.

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"First they ignore you, then they ridicule you, then they fight you, then you win." -- Mahatma Gandhi

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I was thinking more of

By danps on Sun, 10/18/2009 - 10:30am

general corruption. Used to be there was no SEC, corruption flourished. SEC created, corruption somewhat restrained but chafing. CRC implemented, corruption flourishes again. The idea of finding a way to neutralize the SEC is new, as you point out. The idea of turning a regulatory agency into a client of those it is ostensibly regulating is not. James Watt at EPA springs to mind as an example from a previous generation.

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I think that when the level of capture is great enough...

By lambert on Sun, 10/18/2009 - 11:02am

... the regulators don't even think -- can't even think -- of themselves as corrupt or even captured.

It goes to the level of doublethink required. I see Watt as a more straightforward case, if you see what I mean. Maybe I'm not cynical enough.

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"First they ignore you, then they ridicule you, then they fight you, then you win." -- Mahatma Gandhi

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Always watch for the qualifiers

By lambert on Sun, 10/18/2009 - 8:31am

Like "excessing" [sic] speculation, as opposed to speculation. Or "abusive" trading practices. There are plenty of well-respected figures (Soros, for example) who don't believe that derivatives should be traded at all. So it's not just "practices."

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"First they ignore you, then they ridicule you, then they fight you, then you win." -- Mahatma Gandhi

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country club Republicans

By DCblogger on Fri, 10/16/2009 - 1:05pm

this goes a long way to confirm my view that the country club wing of the Republican party has taken over the Democratic party.

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obama did promise

By hipparchia on Fri, 10/16/2009 - 2:19pm

that he wouldn't staff his administration with lobbyists....

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And another buried lede

By okanogen on Fri, 10/16/2009 - 3:30pm

"In addition, SEC Chairman Mary Schapiro ended a policy requiring agency enforcement attorneys to get approval from the SEC commissioners before negotiating fines and penalties with companies accused of violations."

In other words: "let's settle this quietly. Over lunch perhaps? Michael's?"

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FULL DISCLOSURE!: My advocacy for a better world may benefit me personally!

Sorry, I don't fall in love with politicians. I'm not that desperate.....

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Michael's. huh?

By Randall Kohn on Fri, 10/16/2009 - 3:43pm

The linked article, bylined Michael Wolff, ends like this:

As soon as you’re seated, you start assessing who you see (if your lunch date hasn’t yet arrived, you call someone on your cell to report who’s there). Every conversation I’ve had at Michael’s is very analytic, very smart, very precise about who is falling from what height and how fast -- about what forces are about to take what person apart.

It’s all deconstruction.

Which is why lunch is so satisfying.

Hey Mikey, you don't mind if I deconstruct you, do ya? Here goes:

Michael Wolff is a vacuous snob and an all-around worthless piece of shit.

That was satisfying too, and I ate my lunch while typing it.

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JFK has been shot, we miss him a lot
He always knew what to do
-- Philly Cream

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He's 29!

By ElizabethF on Sat, 10/17/2009 - 12:34am

That makes me uncomfortable but it could be that I am a couple of decades older.

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