Source: MarketWatch

Three current and former financial regulators told Congress on Thursday that they made fateful mistakes that helped drive the global financial system to the brink of disaster, and urged Congress to fill the regulatory gaps.

“We have learned that voluntary regulation does not work,” said Christopher Cox, chairman of the Securities and Exchange Commission, in testimony on Thursday at the House Oversight and Government Reform Committee. “It was a fateful mistake” that no one was given the authority “to regulate investment bank holding companies other than on a voluntary basis.”
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“I made a mistake in presuming that the self-interests of organizations, specifically banks and others, were such as that they were best capable of protecting their own shareholders and their equity in the firms,” Greenspan said

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