The Federal Housing Finance Agency and DOJ have obtained more than $36 billion in fines from 18 major financial institutions, including banks like JP Morgan and Bank of America. However, stunningly, not one individual has been indicted or charged civilly for the conduct that resulted in these massive fines.
A federal government credit facility, which responsible marketplace lenders could tap into at a low cost, can help facilitate even stronger products for consumers. A fairer system where banks and marketplace lenders play by the same rules would emerge. A lower cost of capital for marketplace lenders means borrowers will receive better rates.
The problem of short-termism is systemic. Managers will only invest for the long-term if investors evaluate companies based on their long-term value. But, investors will only gather long-term information if they can use such information - which requires them to have the freedom to trade on it in the short-term.