The Times reported last week that banks were fleeing their federal charter, and I observed that we didn't see a remarkable amount of thrift charter shopping (or indications that the ones who shopped were remarkably bad thrifts) during and before the financial crisis. Kathleen Engel reminds me that there appears to be some evidence thatt regulated industry is, in fact, responsive to its regulator. After OCC passed a strong preemption rule in January, 2004, switches to federal charters jumped, as you can see in her 2011 book, The Subprime Virus: Reckless Lending, Regulatory Failure and Next Steps (Oxford) (with Pat McCoy). And, it almost goes without saying, that book is recommend.
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