FinReg21: Modernizing Financial Regulation for the 21st Century
Regulation has a vital role in any financial system—and changes to U.S. financial regulation were clearly needed in the wake of the financial crisis. However, in a constantly evolving economy, discussion over the proper calibration of financial regulation should never really stop. Because banking and other financial services cannot be entirely de-risked, at least not without losing the benefits that we as a society expect from the financial sector, completely eliminating risk is not a plausible goal of regulation. Banks and other financial intermediaries need to take on risk to support a growing and dynamic economic engine.