The Bush Administration on Monday finally revealed its proposals for regulating the mortgage/investment banking industry. Some of the proposals are good, some not so good, but all are long overdue, and while a possible definite plus going forward, none will do much, if anything, to cure the current major market downturn caused – as we’ve pointed out time and again – in very large part by the credit meltdown which itself is mainly a result of lax (or no) regulation of the mortgage/investment banking industries.
First, however, all the proposals for revamping regulation of the credit/financial industries must be poured over and, eventually, passed, in some form, by Congress (a long and laborious process in itself). As to what these regulations end up looking like after Congress ultimately gets done with them is anyone’s guess.
We’ll talk about all of this much more on Saturday’s (4-5-08) edition of “The Money Show”. In the meantime, for a good overview/preview, check out Robert Galvin’s story – “Regulation pendulum swinging the other way” – in Tuesday’s (4-1-08) Boston Globe business section.