JPMorgan bullied bank regulators, report says

[GoldenOldie]

5. It's called deregulation!

I worked in the banking industry during the late 50's, 60's and early 70's, when Federal Auditors had the authority to immediately shut the doors of any bank for failing to allow access to any and all records of the bank.

Strict banking regulations were enacted after the stock market crash and bank failures during the late 1920's. NOt only were banks being audited by Federal Regulators but the individual Banks established their own BOard of Directors which employed their own Internal Private Audtors which would catch any problems before a Federal audit. I remember we'll, many a President/Manager who trembled when looking up and finding an auditor looking back and realizing he had just given a customer a "short term" loan to cover an insufficient check. No matter what the mount, this was considered illegal, if the bank held no collateral for the loan, even if the loan was for only 24hrs. Minor infractions were grounds for immediate dismissal and Findings of repeated or bigger infractions were cause to immediately close the doors of the bank.

If these regulations had sill been in place, the latest disaster of the housing market collapse, bank failures , etc., etc., would not have happened. Will we never learn?