Regulatory shortcomings from "summary" of Too Big to Fail by Andrew Ross Sorkin
The failures of regulatory oversight were glaringly evident during the financial crisis of 2008. The very institutions that were supposed to be keeping a watchful eye on the banking sector failed to do so effectively. The Federal Reserve, the Securities and Exchange Commission, and other regulatory bodies simply did not have the tools or the knowledge to properly monitor the activities of the big banks. One of the primary issues was the lack of transparency in the financial system. Many of the complex financial instruments being traded on Wall Street were completely opaque to regulators. Without a clear understanding of these instruments, regulators were unable to assess the risks that were building up in the system. Another major problem was the fragmentation of regulatory authority. Different agencies had ove...
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