This has come up in the Maple Leaf threads since of course the Harper government seems to want to move to this model. I'm currently reading an interesting article in Vanity Fair about the financial meltdown, and they give the 5 big causes of the problem, one of which being "self regulation"
"Self-regulation is preposterous, as even Alan Greenspan now concedes, and as a practical matter it can’t, in any case, identify systemic risks—the kinds of risks that arise when, for instance, the models used by each of the banks to manage their portfolios tell all the banks to sell some security all at once."
zymurgist
"Self-regulation is preposterous, as even Alan Greenspan now concedes, and as a practical matter it can’t, in any case, identify systemic risks—the kinds of risks that arise when, for instance, the models used by each of the banks to manage their portfolios tell all the banks to sell some security all at once."
Here is the whole article : www.vanityfair.com