No Regulation without Risk
Letter to the Editor

"How are you going to regulate systemic risk when you are the systemic risk?" This excellent question of Senator Jim Bunning to Federal Reserve Chairman Ben Bernanke hasn’t been answered by the Fed or anybody else. Nonetheless, the Fed, which had a big part in inflating the bubble, is now nominated by some elected representatives of the people to be a philosopher-king of systemic risk. Let us hope this notion will fail to get enacted.

Thomas G. Donlan, in the Oct. 26 Editorial Commentary, suggests that such ideas are a matter of "false faith." He's right. After having observed financial regulation fail time after time, its adherents still display this touching (or pathetic) faith that somehow it will work next time, if we just make it even more pervasive and more intrusive.

Alex J. Pollock is a resident fellow at AEI.

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Thursday, October 02, 2014 | 9:00 a.m. – 10:30 a.m.
Campbell Brown talks teacher tenure

We welcome you to join us as Brown shares her perspective on the role of the courts in seeking educational justice and advocating for continued reform.

Friday, October 03, 2014 | 12:00 p.m. – 1:00 p.m.
Harnessing the power of markets to tackle global poverty: A conversation with Jacqueline Novogratz

AEI welcomes you to this Philanthropic Freedom Project event, in which Novogratz will describe her work investing in early-stage enterprises, what she has learned at the helm of Acumen, and the role entrepreneurship can play in the fight against global poverty.

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