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Somehow, a theoretical assumption, widely used in a one cluster of academic specialties — economics, finance, econometric modeling, and the like — became transformed, primarily in the United States near the end of the 20th century, into a supreme decision principle.
For example, the SEC in 2010 had charged Goldman with misleading some of the parties to a billion dollar transaction (involving a complex derivative called a synthetic collateralized debt obligation), alleging specific facts about undisclosed conflicts of interest. Goldman settled within months for $550 million.
Congressional leadership included some measures in Dodd-Frank to constrain the Federal Reserve’s power. Three, in particular, have been raised by the administration and the current Republican leadership in Congress, and have some merit. For one thing, there are some people who say the problem isn’t too little capital.
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