Leading up to its collapse, Bear Stearns was participating along with other major investment banks in a “voluntary” oversight program begun in 2004 designed to consolidate supervision. The idea was that voluntary regulation of these banks was the only way to effectively govern their behavior because of the peculiar complexity and their international structures.
Same topic here:
The chairman of the Securities and Exchange Commission, a longtime proponent of deregulation, acknowledged on Friday that failures in a voluntary supervision program for Wall Street’s largest investment banks had contributed to the global financial crisis, and he abruptly shut the program down.
The commission created the program after heavy lobbying for the plan from all five big investment banks. At the time, Mr. Paulson was the head of Goldman Sachs.
Those would be the 5 investment banks that don't exist anymore, the last 2 having become commercial banks earlier this week.
Doesn't the idea of Hanky Panky Paulson handling the crisis he helped create make you feel all warm and fuzzy inside?
Wasn't the Bush deregulation just the best thing ever?