National Economic Council Director Lawrence Summers laid out five principles for re-regulating the financial markets:
1. The government must have the authority to take over and liquidate failing nonbanking financial institutions.
2. Regulators must be able to make certain that financial institutions have enough capital to weather crises.
3. Regulated entities must not be able to choose their regulators,
4. Regulators should not have to fight each other for jurisdiction.
5. The interests of consumers must trump the interests of regulated companies.
Too bad these were mostly ignored over the past 15 months . . .
Larry Summers: Wrong Man for the Job (April 4th, 2009)
Summers Deflects Criticism of White House Intervention
WSJ, JUNE 12, 2009, 5:10 P.M.