By: kevin

kevin — Wed, 17 Jun 2009 15:32:28 +0000

I saw that same article this morning Peter. Your point is spot on. I imagine those conversations were very interesting to say the least. A useful point to make is that in the private sector, the rules of engagement for those people should be set from the beginning. You get a vote, you guys get a voice, you get visibility, etc. In the public arena, it doesn’t work that way. As that same article points out, the people who didn’t get what they wanted in the first round will now move on to their favorite elected official and begin the process all over again. And if they lose there, they’ll just keep going with the regulators, etc. It’s how the political process works but it is a terrible way to make decisions.

By: Peter Flatow

Peter Flatow — Wed, 17 Jun 2009 13:18:09 +0000

Another big change and in support of higher quality decisions is the involvement of cross functional stakeholders who will be impacted by the ultimate decision. NYT, 6/17/09 – “The administration, which has sought to reduce the corrosive influence of lobbying on policy making, actually encouraged the tussle by inviting executives, academics, former officials and others to the series of meetings overseen by the Treasury secretary, Timothy F. Geithner, and Lawrence H. Summers, the president’s top economic adviser. The meetings were often attended by their top aides: the deputy Treasury secretary, Neal S. Wolin, and Diana Farrell, a deputy director of the National Economic Council at the White House.
In the last two weeks alone, the administration has heard from top executives from Goldman Sachs, MetLife, Allstate, JPMorgan Chase, Credit Suisse, Citigroup, Barclays, UBS, Deutsche Bank, Morgan Stanley, Travelers, Prudential and Wells Fargo, among others. Administration officials also discussed the president’s plan with the top lobbyists at major financial trade associations in Washington.”

Comments on: Financial Markets Regulation a Case in Complex Decision Making

By: kevin

By: Peter Flatow