Rules vs. Discretion in Resolution Authority
March 9th, 2010
I like Steve Waldman’s post getting between the arguments of The Epicurean Dealmaker [TED] and Yves Smith over the issue of rules versus discretion in resolution authority. TED: “But I continue to maintain that the law authorizing the resolution authority—as opposed to the confidential working documents, plans, and intentions of the authority itself, which can and should be as specific as possible (and subject, of course, to constant review and revision in response to changing circumstances)—should be drafted at a very high and determinedly vague level.”
I’ve been thinking a lot about this issue lately, so I’ll use this as a prompt to write out some thoughts.
