Originally published on Thu December 13, 2012 11:55 am
If a kid does something bad and you want to discipline him — give him a timeout, say, or take away a toy — there are some basic principles that seem to work.
The punishment needs to happen quickly after the bad behavior. And it needs to be significant enough to get noticed. Those rules aren't just for kids; they need to hold true for any type of punishment to be effective.
But if you're a federal regulator punishing a bank, it can be tough to be swift enough and to levee a penalty that's severe enough to make a difference.
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