THIS IS WHY IT’S NOT ENOUGH FOR THE DOEd TO JUST RESCIND THE OLD TITLE IX RULES: In-House Regulators: Documenting the Impact of Regulation on Internal Firm Structure. “Using case studies and theoretical insights, this Essay hypothesizes that the structures firms create in a regulated environment will not immediately disappear in a deregulatory world. Rather, they will persist. Modern regulation causes firms to make department-specific investments and centralize information gathering. Firms accomplish this, in part, by increasing the presence of regulatory-related staff. And, once these investments are completed, they will insulate regulatory-related staff from immediate removal in a deregulatory environment. That is, in-house regulators will be sticky.”
In other words, regulation creates a constituency within firms — the “compliance” bureaucracy — that survives deregulation. You can’t just undo the regulation, you have to push them in the right direction.