FORMER International Monetary Fund chief economist Kenneth Rogoff warned yesterday that excessive regulation of the financial sector was a likely outcome of the Wall Street meltdown.
Citing the example of the Sarbanes-Oxley Act that imposed new reporting guidelines following Enron's collapse, he said that overregulation would prove to be a long-term drag on the economy.
"It's going to be a heavily Democratic Congress after the next election, which is likely to impose a lot of regulation … there's a chance we could have an overkill that would slow the economy," said Professor Rogoff, who now teaches economics at Harvard University.
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