I saw an excellent post about how Congress, including Democrats, weakened oversight of the financial system in the 90’s by restricting investor lawsuits. It is located on John Russonello’s blog, and I caught it after seeing it referred to in that venerable blog, Tort Deform. Here is Mr. Russonello’s opening salvo:
President Obama’s pledge to bring back some meaningful regulation of the financial markets may be more difficult than he imagines. The reason: Senate Democratic leaders not only enabled the deregulation, they were cheerleaders.
In America, unlike other nations, the structure of investor protections against securities fraud stands on two separate legs: Government regulators and private lawsuits. Senator Chris Dodd, Chairman of the Senate Banking Committee, and other Democrats, worked diligently to saw off both legs.
Here is how the people’s representatives took the side of fraud defendants over the fraud victims.