What Kind of Financial Regulation for the 21st Century?

Abstract

The collapses of major financial institutions during the latest crisis have 5 common causes both internal (authoritarian leader, failing on internal governance system, use of leverage) or external (access to cheap short-term funding, regulators nonchalance). The lessons to be drawn are an improvement in internal governance with Board of directors really competent and independent from the leader, and a better regulation which doesn’t mean an overregulation (the more obvious risk in 2012).