Boston Properties CEO and U.S. News Publisher Mort Zuckerman says regulation is good not only for banks, but for the financial world at large.
"Unregulated, they went over the top. They had leverage of 30 and 40 dollars of debt for every dollar of equity," Zuckerman told Bloomberg.
"We've got to get transparency into the toxic assets (banks) accumulated and make sure they don't accumulate so much debt in relation to equity," Zuckerman notes. "We cannot allow the entire financial system and the economy of this country to rest on the private decisions of people who are willing to take these kinds of risks."
Zuckerman does not believe, however, that regulating Wall Street pay is relevant at all.
"I think we should be regulating Wall Street and what they can do, but what they want to pay themselves, that gets to be ridiculous," Zuckerman says.
"I don't think that's an issue we should get into."
Larry Harris, the former chief economist for the U.S. Securities and Exchange Commission, agrees that over-regulation poses dangers
"There are a lot of people who are very scared right now," he told attendees at a conference at the University of Southern California.
"The way you deal with fear is to remove uncertainty. Transparency is extremely important, so that people recognize the risks that they're facing," he said.
"Hopefully, we will go back to more sensible regulation, but not over-regulation because that kills the creativity of the economy," Harris says.
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