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Closing the Barn Door

In: See No Evil

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  • Erik Banks

Abstract

Every crisis brings with it the promise of change, including new rules and new discipline so that the lapses and losses won’t be replayed in the future. In other words, a bit of “barn-door closing.” And so it has been with this crisis – though, it must be said, with a bit more zeal, because this one has had some extra zeros in the red ink column. Not surprisingly, there is a populist element to the exercise: politicians and regulators need to be seen to be doing the “right thing” for their constituents so that they can get reelected or otherwise keep their jobs – though by now I’m sure that they don’t know exactly what the right thing is.

Suggested Citation

  • Erik Banks, 2011. "Closing the Barn Door," Palgrave Macmillan Books, in: See No Evil, chapter 9, pages 162-185, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-29917-7_10
    DOI: 10.1057/9780230299177_10
    as

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