Regulatory reforms always start out with well-meaning intentions. However, unless new regulations address the root cause of the problem requiring reform, and interests of all parties are aligned, they are not just less than effective. They can have unintended consequences resulting in greater complexities that actually end up increasing risk. Are we beginning to see some such effects with the recent regulatory reform? The following article from last Sunday’s (April 20, 2014) New York Times may be of interest along these lines.
“Banks Cling to Bundles Holding Risk” by Gretchen Morgenson http://www.nytimes.com/2014/04/20/business/banks-cling-to-bundles-holding-risk.html?ref=todayspaper