In the fallout of the American financial crisis, key individuals of the U.S. Securities and Exchange Commission have acknowledged the inherent flaws of voluntary self-regulation. While many elements of the financial crisis may fly over the head of the average American, the regulatory problems seem astoundingly simple. SEC chairman Christopher Cox claimed that the ability of investment banks to withdraw from voluntary regulation “”diminished the perceived mandate and weakened its effectiveness.”” For those of you on your toes, you may wonder how any voluntary system can have a “”perceived mandate.”” Inherent in the term “”voluntary”” is a complete lack of any mandate, or required activity. The “”perceived mandate”” was merely an ideal term used to help bolster the SEC’s claim of regulatory responsibility on the part of financial firms, otherwise shown to be a sheer lack of regulation.

–ÿDaniel Sotelo is a political science junior.