Many financial experts are asking about what went wrong with regulators. The Financial gurus developed complex instruments to avoid regulation. They managed to hide the amount of money wrapped up in swaps and mortgage papers . Transparency was fought and lobbied against successfully. Even at this point we do not know how much bad paper is actually held by the financial institutions. How can you fix it ,if you can not even define it. Regulation is always behind the curve. New banking scams are thought of endlessly and regulators have to become educated in them before they can even determine jurisdiction, let alone how to fix them.
Free market advocates could not even see the sophistry of their philosophy. But many CNN gurus are begging for regulation now. But dopers do not give up so easy.