Reply #2: New regulations don't help.

[RM33]

Another problem is that government regulators tend to be C- students while Wall Streets then to be the A+ students. Top college grads can get top paying jobs. The government can't match the salaries that Wall Street firms can afford to pay. So they can only afford to hire the college grads rejected by Wall Street firms. The C- student.

So what is the result? Financial whiz kids stay one step ahead of government regulators by creating new exotic products that regulators don't understand. They can out think the government. So by the time the government catches up to what Wall Street is doing, it is to late.

A better solution is to bring back the great divide. Separate investment from banking. The job of a bank is to warehouse money and make boring loans. Let the investment firms speculate. If they fail they will destroy themselves without talking the banking system with them. By isolating investment from the rest of the financial industry we protect the system.

The said truth is more rules will not work because the financial whiz kids will just find a way around the rules.