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Death By A Million Regulations
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sjacks982
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sjacks982,
User Rank: Apprentice
8/17/2013 | 11:25:17 AM
re: Death By A Million Regulations
When I hear "too much regulation" I hear "oink, oink". Wasn't SOX an outgrowth of Enron? Didn't email retention rules tighten up after Microsoft tried to con the DOJ? At the turn of the century, UofW Medical Center settled for $10 million (potentially ~$50 million) on overcharges for misrepresenting the care provided (e.g. charging for "ghost" staff), and recently caught again trying to defraud the Government. Private insurance investigates and settles numerous of these cases outside the public eye. Regarding onerous report requirements: outside private insurers and insurer/hospital companies internally (like the Blues) require more detail than the Fed agencies. I would wager your guests were either grossly incompetent CIOs or you don't recognize thinly disguised greed. (And the AMA protects negligent doctors better than the Catholic church covers up for priests.)

These are the same arguments given by Bank IT execs, yet any nearly intelligent human being (sorry, but accountants aren't known for high IQ) could guess that their practices were against the law.
Oh and the statistical chance of your going home from surgery with an errant surgical instrument sewn up inside you hasn't changed from two decades ago. Incompetence: one hospital's charging Medicare for the missing instruments was key to one investigation.
Michael Endler
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Michael Endler,
User Rank: Author
8/17/2013 | 5:57:51 AM
re: Death By A Million Regulations
I sympathize with this point of view. Many regulations are, as Rob effectively illustrated, a quagmire of jurisdictional questions, redundancy, and overall b.s. But there's a problem: some companies look for any absence of regulation they can exploit.

It's almost like some companies know laws will be written later to outlaw their activities, so they figure they have to maximize their bad behavior while it's still legal. It's that gray area where "ethical" and "legal" start to separate from one another. The garbage with Goldman Sachs trying to affect aluminum prices is a recent example of this sort of thinking.

And when the companies get punished, the fines are never enough to appease public disapproval. If you make the mistake of parking in the wrong space in San Francisco and your car gets towed, the penalty you'll pay to get your car back is more severe, in relative terms, than what many fines related to the financial crisis have been. It's no wonder people have, as Rob pointed out, a natural affinity for more rules, more regulation and - so they hope - more protection. When companies so often do things that make people think, "Someone should stop that!", calls for more regulation are difficult to avoid.
majenkins
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majenkins,
User Rank: Ninja
8/16/2013 | 3:59:15 PM
re: Death By A Million Regulations
The little up and down arrow head thingies.
MyW0r1d
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MyW0r1d,
User Rank: Strategist
8/16/2013 | 2:55:33 PM
re: Death By A Million Regulations
Insurance companies! Are you kidding? Where they fought tooth and nail to keep subscribers and sell them every conceivable add-on as they tried to reduce the costs, the government now obliges a practically 100% participation. There is a word for it - windfall - any complaint in light of the benefits would be lame. A positive side effect, long term unemployed could consider a career change and start to study now to enter a possibly expanding market to deal with the increase of business.
RobPreston
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RobPreston,
User Rank: Author
8/16/2013 | 1:08:56 PM
re: Death By A Million Regulations
Where's the Like button on Comments?
cbabcock
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cbabcock,
User Rank: Strategist
8/16/2013 | 5:56:15 AM
re: Death By A Million Regulations
When it comes to mortgage industry regulation, we could say not too long ago, What regulation? Many parties saw that it was running amuck but there was no countervailing force to pull up short its bad practices. Too many rules, forms and blind policies? Yes. But regulation? Not in the 200r5-2008 time frame.
KBurger
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KBurger,
User Rank: Apprentice
8/15/2013 | 8:47:33 PM
re: Death By A Million Regulations
I have mixed feelings about this. Rob, you are right on about the inefficiencies and costs due to redundant and overlapping regulations (no different from redundant/overlapping systems that incur from mergers, growth, etc.). And it's very true that IT often (usually) bears the brunt of compliance requirements, especially when it comes to providing reports, analysis, audits, etc. But I also think a tremendous amount of time is wasted complaining about and fighting regulations such as Dodd-Frank. No one likes to be regulated, but I see a growing number of organizations just dealing with it and moving on. Ideally, the investments made in compliance can be leveraged for better risk management, customer insight and competitive intelligence. I know that's an elusive goal but it's possible. One final note -- for all the complaints about the Affordable Care Act, one group you're not hearing much from is insurance companies. Although they will be dealing with restrictions, scrutiny, etc., they also have the potential to gain new customers. So regulation can cut (so to speak) both ways.
Thomas Claburn
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Thomas Claburn,
User Rank: Author
8/15/2013 | 8:17:09 PM
re: Death By A Million Regulations
The entire tax code needs to be revised. Ideally, it should fit into 140 characters. Here's 33: All income shall be taxed at 15%.
RobPreston
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RobPreston,
User Rank: Author
8/15/2013 | 8:12:45 PM
re: Death By A Million Regulations
Ah, excellent question. A committee of the good and great? I was half joking.
mjensen810
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mjensen810,
User Rank: Apprentice
8/15/2013 | 8:05:54 PM
re: Death By A Million Regulations
Unfortunately, the innocent get pilloried along with the guilty. As a small country bank, we certainly did nothing to contribute to the melt down or any of that, yet we get to adhere to the same regulations as the big boys.
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