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The formal concept is regulatory capture:

https://en.wikipedia.org/wiki/Regulatory_capture

Which is a result found in Public Choice analysis:

https://en.wikipedia.org/wiki/Public_choice

The SEC is specifically mentioned in the first article.

As I said elsewhere, what is surprising here is not that Goldman got a wrist slap, but that intelligent people expect some other result.



I agree with you and find it aggravating as I see it in politics all the time. Otherwise smart, effective people stay all over peripheral instead of core issues.

An example is recent election. People are citing what each candidate says or promises despite admiting the whole game is to lie for votes then do what they're paid to do by their contributors. So, you look at voting history and prior business activity to determine both likely action and character. Got Hillary and Trump filtered out almost instantaneiusly for me whereas they rise to the top for the masses. "But he/she said..." (Sighs)




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