Quote:
Originally posted by Not Bob
The NYSE sure did a bang-up job in the 1920s, didn't it? Google "Richard Whitney" or "Pecora Hearings." The reason that self-regulation works well now is not that the NYSE and NASD are "private entities." Heck, I'd even argue that they aren't even private anymore, given that their rules were approved by the SEC. No, the reason that self-regulation works is because the muscle of the SEC sits behind the NASD and NYSE. Kind of like how the muscle of the Roman legions backed up King Herod.
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Even with the SEC sitting behind them, I would imagine many former stockholders of Enron, Worldcom, AIG, Shell, Adelphia, Tyco, and other recent companies in the news would tend to agree that they still ain't worth much as regulators.
