It took so long into this New York Times story about congressional efforts to bring some regulatory oversight to the unregulated elements of Wall Street that it actually brought a smile to my face when we finally arrived at the inevitable “But industry groups warn…” part of the article. After all, I was curious, what will industry groups warn? What dire menace would it propose to the Republic if financial institutions that get bailed out like banks when they go bust, and now get access to the discount window like banks, also get regulated like banks before they do things that could force the government to step in and clean the mess? What should a politician eager to the bidding of firms who’ve bribed him pretend to be worried about?
The answer is: But industry groups warn that heavy-handed regulation could dry up investment capital just when the economy needs it most.
Because, of course, had new regulations been proposed 18 months ago, industry groups would have leapt at the chance. But now’s not the right time!