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When the goal is profit at any cost, the consumer can end up losing out badly. The reason behind most large financial scandals across the world can, in some way, be put down to greed that goes unchecked. Regulation seeks to put checks and balances in place so that participants in financial markets do not let their pursuit of profits overrule their responsibility to clients.

It is important to concede that the benefits of regulation are highly correlated with the quality of the regulation in question and how that regulation is applied within the context of the market at that point in time (think Hoover’s regulation vs FDR’s). The benefits we saw in the previous arguments did not come purely because of regulation for its own sake. In each case, regulation would have to have been creatively identified, and thoughtfully applied in order to have a powerful positive effect. The same rings true for any repeal of existing regulation

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