If regulatory monitoring of the merged financial firms were proven to be sufficient to find improper behavior before it results in losses to investors or other maladies, then such mergers would provide economies of scale and other benefits. Unfortunately, too few monitors were in place in the past. We should have learned something by it, and hopefully would apply it to such mergers going forward.
Let me clarify and stress that I am suggesting regulation in the form of ‘monitoring corporate behavior and financials’ rather than creating pre-emptive restrictions, red-tape, and other barriers to entry to free markets.
If regulatory monitoring of the merged financial firms were proven to be sufficient to find improper behavior before it results in losses to investors or other maladies, then such mergers would provide economies of scale and other benefits. Unfortunately, too few monitors were in place in the past. We should have learned something by it, and hopefully would apply it to such mergers going forward.
My post above deserves the ‘Captain Obvious Award’ for today. ;)
Let me clarify and stress that I am suggesting regulation in the form of ‘monitoring corporate behavior and financials’ rather than creating pre-emptive restrictions, red-tape, and other barriers to entry to free markets.