Monday, December 19, 2011

Nice Venn diagrams showing the hazards of the relationship between the Federally Regulated and the Federal Regulators who Regulate Them...I thought this was supposed to STOP???

Nice Venn diagrams showing the revolving door of regulator to regulated and vice versa.  You will see people from industry appointed to Federal agencies responsible for regulating the industry that person came from, AND you will find former elected officials who now lobby for the same companies they were responsible for regulating when they were in office.  Can you say "Conflict of Interest?" or at the minimun it creates moral hazards for the people involved.

A positive aspect of this arrangement is you have industry insiders who are familiar with the inner workings of the industries they regulate and can be more effective in setting/creating policies that can have the desired effect on the regulated.

A negative of this arrangement is the same as above, but the outcome toward the tail-end is the opposite--the industry gets protection by way of the politically appointed regulator who is/was "one of them".

Source: KPC

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