Law professor Tamar Frankel, an authority on securities law, corporate governance, and legal ethics, comments on the Feds/NY joining in the CDS trading probe:
“Historically, Americans were deeply suspicious of government power. It is not by chance that American enforcement units have been so many and competed with each other. How come they have been joining forces lately without a murmer of protest from the public? How come their joining ranks is viewed now as beneficially efficient?
“One explanation is that antitrust laws have been relaxed and mergers have given rise to mamouth private-sector corporations and financial institutions. Their rising power is threatening to overcome governmental power. Therefore, government units unite.
“A second reason may be that different government departments lead to different laws, and multitude of laws and regulations are expensive. We are slowly moving towards unification and standardization of forms and laws.
“Third, the cost of splintered government units and duplicate information sources has become too high. The way things look today, government and enforcement is likely to acquire more clout.”
Contact Tamar Frankel, 617-353-3773, firstname.lastname@example.org