Strategy is about finding a way around constraints. In military terms those constraints have to do with the political objectives chosen, the enemy and logistical constraints of all sorts. The strategist is looking for ways to exploit opportunities to get around those constraints. In the economic world and the world of finance it is still about looking for the edge.
Regulations are designed to prevent people from unfairly exploiting opportunities.♠ The thing about regulations is that there is always going to be someone looking for a way around them. That is, right up to the point that regulations bring the market to a standstill. In the mean time, the regulators will always be behind the smart men and women who are the strategists, the ones trying to find the holes in the regulations and the markets that they can squeeze through.
And, I think that is what Mr Paul Atkins is trying to say in today's Wall Street Journal.
As an aside, I am wondering if anyone has done any serious examination of the impact of the Sarbanes-Oxley Act. Being down in the corporate trenches, my experiencer is that it has created a great big bureaucracy, but has not really increased transparency or honesty. But, it has irritated the little folks who make the corporation run and made their life worse.
Regards — Cliff
♠ Since this is in the context of the US economic system, I am going to assume that the US Congress is not going to be producing regulations that will distort the market to unduly favor one side over another or introduce corrupt practices.
10 months ago