Wolters Kluwer's Elaine Duffus outlines the deregulatory lifecycle from past examples in financial services supervisory oversight in this Corporate Compliance Insights feature byline, "Deregulation Déjà Vu: 3 Cycles Every Compliance Leader Should Remember."
Duffus writes about the familiar predictable cycle that has played out repeatedly in major financial crises in the modern era, with deregulation fostering innovation but which in turn is followed by speculation. This triggers a collapse, leading to bailouts and stricter regulations in turn—a pattern repeated until the last crisis of 2023 bank failures which, she writes, has led to less regulatory oversight, not more.
“We’ve always learned these lessons the hard way, then forgotten them just in time for the next crisis. But at least we used to respond to crises by strengthening oversight, giving the next generation of bankers guardrails to keep them from repeating past mistakes,” she notes. But that pattern changed in 2023. “And that should worry every compliance professional, risk manager and board member reading this,” writes Duffus.
To read the full article, visit: https://www.corporatecomplianceinsights.com/deregulation-deja-vu/
Duffus writes about the familiar predictable cycle that has played out repeatedly in major financial crises in the modern era, with deregulation fostering innovation but which in turn is followed by speculation. This triggers a collapse, leading to bailouts and stricter regulations in turn—a pattern repeated until the last crisis of 2023 bank failures which, she writes, has led to less regulatory oversight, not more.
“We’ve always learned these lessons the hard way, then forgotten them just in time for the next crisis. But at least we used to respond to crises by strengthening oversight, giving the next generation of bankers guardrails to keep them from repeating past mistakes,” she notes. But that pattern changed in 2023. “And that should worry every compliance professional, risk manager and board member reading this,” writes Duffus.
To read the full article, visit: https://www.corporatecomplianceinsights.com/deregulation-deja-vu/
