Governance & Accountability
D. N. Ghosh
We may develop sophisticated regulatory and supervisory systems, but financial celebrities know how to get round these, rues D. N. Ghosh in Governance & Accountability (http://www.oup.com/).
This is how the circumvention happens: "Their research is oriented primarily, if not exclusively, towards exploiting regulatory arbitrage in systematic ways. Initially, their suave dealings with the political masters tend to generate a climate of regulatory caution, but in the course of time, the inevitable happens: market participants tend to interpret such silence as the implicit regulatory approval of the behaviour of celebrities." Ghosh, therefore, advises regulators to sharpen their regulatory intelligence "in an ambience where the big and powerful spare no efforts to make it known that they can get away with virtually anything."