# Professor Kim Schoenholtz is interviewed about bank regulation

1 Faculty News September 12, 2016 ![The New Yorker logo](/sites/default/files/styles/246w/public/assets/images/con_032750.jpg?itok=hERliZMl)>

Excerpt from [The New Yorker](http://www.newyorker.com/business/currency/the-record-fine-against-wells-fargo-points-to-the-failure-of-regulation) -- "I spoke with [Kermit Schoenholtz](http://www.stern.nyu.edu/faculty/bio/kim-schoenholtz), a former chief economist at Citibank and now a professor of banking finance at the N.Y.U. Stern School of Business, and the co-author of an essential banking textbook. He told me that, since the beginning of the Great Depression, our system of bank regulation has relied on bank self-monitoring; it’s long been clear that government banking cops could never match the resources of the banks themselves. Each fine, then, serves two purposes: to punish the wrongdoing and also to warn all banks that they will pay a stiff price if they don’t root out such activity. But he warned me, 'The mechanism isn’t working.'"

[Read more](http://www.newyorker.com/business/currency/the-record-fine-against-wells-fargo-points-to-the-failure-of-regulation)