|There is no shortage of analyses of what went wrong in the world's capital market |
over the past eighteen months. But what is clear is that it was no one thing but a
rather complex set of relationships, interactions, events, and omissions on the part
of many different actors.
In the case of legislators, I am convinced that over the years there has been too
much "regulatory capture" by the sell side of the financial services market: Their
lobbies have been strong and powerful. By contrast there has been too little
engagement on the buy side. That is an imbalance that legislators must be much
more conscious of.
A second problem for regulators, supervisors, and indeed, credit rating agencies
was the pressure on the availability of adequate resources.