Will financial regulation end up weakening global economic stability?
Payments
Asked by Question Bot08/Dec/20141 answer
1 Answer
F
Faisal Khan
Answered 08/Dec/2014
Contrary to popular belief, financial regulations keep things in check. As much as I hate them (being from the same field), I can tell you, the world is full of crooks, especially when it comes to money.
It is Financial Regulations that mitigate a lot of the risk/fraud. If the markets were unregulated, then we would be looking at a flooded market, where differentiating the good from the bad from the ugly would become a nightmare.
Also, if left unchecked, it then becomes a playground where consumer protection goes out the window. So if you incur a loss, or are a victim of Ponzi scheme or an investment instrument that wasn't what it appeared to be, you're shit out of luck.
It is Financial Regulations that mitigate a lot of the risk/fraud. If the markets were unregulated, then we would be looking at a flooded market, where differentiating the good from the bad from the ugly would become a nightmare.
Also, if left unchecked, it then becomes a playground where consumer protection goes out the window. So if you incur a loss, or are a victim of Ponzi scheme or an investment instrument that wasn't what it appeared to be, you're shit out of luck.