Miller, D. and Dinan, William (2009) Revolving doors, accountability and transparency - emerging regulatory concerns and policy solutions in the financial crisis. In: Dutch National Integrity Office organized Global Forum on Public Governance, 2009-05-04 - 2009-05-05, Paris. (Unpublished)
It is a common phenomenon in all areas of regulation that regulators become captured by the industry they regulate, meaning that they take on the objectives of management in the firms they regulate. They may thereby lose sight of the ultimate objectives of regulation. Regulatory capture is particularly serious in industries such as banking where there is a conflict of interest between the firms‘ objectives (to maximise profits) and the objectives of the regulation.
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