Do Regulations Affect the Allocation of Capital in the Economy?

Felix Weinberger: Does banking affect the allocation of capital in the economy? Do it somehow make it better? He says he's increasingly less convinced that it has so much to do with cost and sort of right places to allocate capital. But also, if we're always socializing losses, then it's not just the privacy of the gains,right? It's the socialization of the losses that goes along with that,. Steinberg: I think the specter of that returning is really troubling to people.