The most common regulatory capture mechanism is the enforcement of self-regulation. This means that someone or something else is putting a chokehold on one of your desires, goals, and decisions and you are caught up in a reactive situation in which you don’t have the power and control of your decision making. You may have the power, but you can’t take action. The way to change this is to take control—and this is where the power of self-awareness is critical.
Regulatory capture is one of the most common reasons why companies, governments, and laws are not working. This is because people are caught up in the illusion of self-regulation but they dont have the power to effect change. Instead, they rely on the illusion of self-awareness to hold them back. To change this, it is important for people to realize that their thoughts, feelings, and decisions are not the be all and end all of your life.
Regulatory capture occurs when companies get “regulatory capture clearance” to act on their own behalf. For example, you might sell a product that’s not subject to any specific regulation and companies are allowed to come in and decide what is and isn’t a good idea. When you sell a product that you shouldn’t allow anyone else to sell, you are effectively acting as a “regulatory capture.
This sort of thing happens for a variety of reasons. For example, if you have a product that is required to be regulated, then you probably want to allow other people to make money off that idea. If you want to make sure that the company you work for isnt doing anything wrong, you might want to allow them to come in and give you a pass on all the legal issues.
Regulatory capture occurs when you over regulate or over fund something. For example, when a company is over funding a political campaign, that company is actively working against you. In this case, you are acting as a regulatory capture as the company is actively trying to force you to fund them.
Another example is when an investment bank takes over a company and uses its lawyers to get rid of the CEO. When the same bank takes over the CEO of a company that does something they dont like, the company is in regulatory capture. In this case the company is acting as a regulatory capture because the bank is trying to force you to fund them.
As a rule, companies that have a good CEO that is willing to stand down and let the board of directors take over are more likely to be able to survive because without one or more directors the company has no one to sell the stock to.
The CEO of a company is only a small part of the board. The board is comprised of officers and directors, which is comprised of shareholders. The board of directors is the elected body that appoints the officers and directors. So when a bank takes over a CEO, it is a clear cut example that they are effectively killing a CEO.
So why is it when a company’s board of directors is taken over by a big law firm that it is not a good idea to sell off the shares to the public? Well, because once a company is regulated by a giant law firm, they can get away with any kind of abuse they want to.
In a nutshell, regulators are there to protect the public interest while directors are there to ensure that the interests of shareholders are protected. If shareholders are not protected, the public is not protected. And so, if they are both being protected by the same entity, this could lead to what is known as a “regulatory capture.” When a company is sold to a new larger company, that bigger company may be able to do things that the original company could not.
