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Regulatory Capture Explains BP and Wall Street Disasters
San Francisco Bay Area Independent Media Center (Indybay) (2010)
  • Gil J. Villagran, San Jose State University
Abstract
Nobel Prize economist Joseph Stigler posits that Regulatory Capture explains the process by which regulatory agencies created in the public interest to ensure public safety, instead act in favor of the industry. It is alleged that BP officials would fill in Minerals Management Service (MMS) inspection sheets in pencil, then Dept. of Interior employees would write over the pencil marks in pen, sign and file the forms as completed safety inspections. MMS staff whistle-blowers testify that some regulators took drugs, accepted gifts, and had sex with industry officials and lobbyists. But such shenanigans did not stop at the well head or the refinery, but also took place in the Washington, DC, offices of Secretary of the Interior Ken Salazar.
Disciplines
Publication Date
June 2, 2010
Citation Information
Gil J. Villagran. "Regulatory Capture Explains BP and Wall Street Disasters" San Francisco Bay Area Independent Media Center (Indybay) (2010)
Available at: http://works.bepress.com/gil_villagran/6/