There’s an interesting little example of the way in which well meaning regulation has significant costs here. You’ll recall that HSBC was hit with $1.9 billion in fines over allegations about money laundering? You’ll also have noted that no one ever actually did prove that it shifted around money for Mexican drug dealers and all the rest. Rather, that it’s internal documentation processes were inadequate to show that it had not been doing so. It was not a $1.9 billion fine for laundering money: it was a $1.9 billion fine for not following the regulations about how to monitor and or prevent money laundering.