How to Fix the Financial Crisis

The head of the Blackstone Group offers his seven-step program to ensure the financial crisis is solved quickly and does not return. It boils down to imposing the same financial regulations across the globe, sterner and more rational and comprehensive regulations at home, and transparency, transparency, transparency in accounting. But he adds a warning: “We must not create a new system of regulation that throttles innovation through the ever-increasing complexity of its rules. Sarbanes-Oxley…has not made American corporations any more stable or profitable, but it has damaged our competitiveness and weakened our domestic financial markets. We must not make the same mistake.”