“The way the SEC structured the gates would be destabilizing,” Plaze said in an interview. Plaze also said the floating-share price should be imposed on retail funds as well.
Looking back, Plaze said, the agency might have achieved a stronger rule had it moved forward with fuller reforms in 2010. The crisis was fresher in the minds of investors, regulators and taxpayers at that time.
“Every time there is a crisis, there is an immediate effort with missionary zeal to fix it,” Plaze said. “The problem, of course, is we didn’t know what to do. We just didn’t.”