FinancialGuy Writes!

I have written in this blog on many occassions in the past that most financial markets do not need much new legislation. Instead, they need much better enforcement and stronger actual penalties when offenders are convicted under the existing rules.

I know that there are aspects to financial markets that really do need legislation, I don’t deny that. However, much more could be done with the thousands of pages of rules that currently exist.

An Example?

Pretty much every expert there is seems to think that on Wall Street, in London and every other financial centre, insider trading is rampant. On one hand it seems to be a victimless crime. However, it could easily be argued that the real victims are you and me. Or anyone and everyone with money in a pension scheme or investment fund.

Thus, while the likely sentence seems harsh, I think that the potential for a 20 year sentence in this case in the US will be a superb deterrent.

Why risk more than a decade in prison when you are already earning tens of millions per year???

Bravo America!

I hope that European financial legislators are watching closely.

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