According to The Wall
Street Journal, a study sponsored by the Federal Reserve Bank of New York in
2009 uncovered “a culture of suppression that discouraged regulatory staffers
from voicing worries about the banks they supervised.”[1]
Whereas the report points to excessive risk aversion and group-think as the
underlying problems, a fuller explanation is possible—one with clear
implications for public policy.
The full essay is at A Case of Regulatory Capture.
