[Hermel]

And this agency problem is partially caused by regulators and "good governance" rules who demand that the board is "independent" from the shareholders. But this makes them have less skin in the game and diminishing the effect of fines!

[blippage]

I also found out that in the UK there were bankers on the bank regulation committee. Hmmm, conflict of interest much?

[mbg721]

The problem is, who else would have the desire and expertise to be on the committee? Regulatory capture is a hard problem, because anyone qualified to regulate is going to have some interest.