Regulation is good

In a Financial Times article Lloyd Blankfein, Goldman Sachs' chief executive, writes

"For policymakers and regulators, it should be clear that self-regulation has its limits. We rationalised and justified the downward pricing of risk on the grounds that it was different. We did so because our self-interest in preserving and expanding our market share, as competitors, sometimes blinds us – especially when exuberance is at its peak. At the very least, fixing a system-wide problem, elevating standards or driving the industry to a collective response requires effective central regulation and the convening power of regulators."

It looks clear to me that self regulation puts you at a disadvantage whereas regulation creates a leveled playfield.

 ... UPDATE: and it looks like others are finally getting it too.