Binary Debates About Regulation Are Really Getting Tiresome

Receiving Wide Coverage ... Regulatory Reform Redux: The New Yorker's financial columnist, James Surowiecki, frames the Libor-rigging scandal as a textbook example of the financial industry's inability to regulate itself. Reputation risk has proven an insufficient incentive for bankers to behave, he writes; an "intrusive and overbearing" approach is "exactly what the financial industry needs." But Reuters' blogger Felix Salmon finds Surowiecki's new-sheriff-in-town prescriptions (jail time for fraudsters and preventive measures inspired by urban policing strategies)...