The Right Way To Regulate
Source: McKinsey & Company
One of the primary misconceptions about the 2007 - 08 financial crisis is that it resulted from, and has thus ended, a monotonic march of deregulation over the last three decades of the 20th century. It is not entirely clear, first, what deregulation in this context means. The question of financial regulation must be approached from two vantage points. First, how can we preserve the economic growth and innovation that have resulted from a dynamic financial system? Second, how do we reduce the risks associated with an increasingly complex financial system without thwarting its further development and the resulting benefits?