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Give bank regulators a cut of penalties levied as a result of their investigations to help put a wedge in the revolving door
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This comment got me thinking about how we can modify incentives for government regulators of the banking industry.
If someone could get a slice of, say, a few hundred million dollars for a job well done we'd have the best and brightest fighting to get to violators. Potential violators will be keenly aware of this strong motivation on a level they deeply understand which may help keep them in line. It might even entice some talented folks from that side of the Street into the ranks of the white hats.
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