Regulating chaos. (Russian government's ineffective regulation of scandal-plagued financial markets)

The Economist (US) | August 27, 1994 | Copyright

THE undergrowth of Russia's emerging financial markets is thick with scams. Earlier this month the tax police tried hard to demolish the MMM investment pyramid (which this week was still trying defiantly to rebuild itself). The authorities are now trying to close down another, similar fund called Russki Dom Selenga. The country's central bank has published a list of 23 institutions that are taking cash deposits without a licence to do so. And the Anti- Monopolies Committee has warned 51 companies, most of them financial ones, that their advertisements are breaking the law by ...

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