Every regulatory exemption functions as an exploitable loophole

Evidence

Volcker’s second requirement is a key feature of an effective regulatory system: personal accountability for unlawful corporate practices. It shifts the major responsibility for adherence to the law from regulators to the officials managing the firms. Volcker also wanted vigilant regulators: “And I’d have strong regulators. If the banks didn’t comply with the spirit of the bill, they’d go after them.” The former senator Ted Kaufman, now a professor at Duke University School of Law, describes how adding exemptions to the rule opened a Pandora’s box of rules covering 300 pages: “Here’s the key word in rules: ‘exemption.’ … [A]s soon as you see that, it’s pronounced ‘loophole’” (Stewart, 2011). — Albert Bandura, Moral Disengagement, 1536 (#expands, via linked claim)

Categorization

• XREF: connects to: Regulatory exemptions function as exploitable loopholes undermining enforcement — Albert Bandura, Moral Disengagement: How People Do Harm…, 1536; Regulatory exemptions accumulate until laws become unenforceable — Albert Bandura, Moral Disengagement: How People Do Harm…, 1538; Categorization and renaming alone let regulated industries evade taxes and bans — Albert Bandura, Moral Disengagement: How People Do Harm…, 1653 (+1 more)

Broader Connections

• Regulatory exemptions function as exploitable loopholes undermining enforcement #expands (0.95) — Albert Bandura, Moral Disengagement, 1536