Pondering need for regulation

It is of paramount importance to reflect and think about the current American financial storm with the objective of attempting to (i) determine and comprehend the factors that created it, (ii) and to draw lessons that could help in avoiding local and regional financial storms that could erupt here and there behind the backs of banking supervisors and financial regulators and other auth-orities charged with the soundness of the financial systems. For the sake of this objective, it is necessary to look at the current situation and try to understand the factors that created it and its consequences that have become apparent in the fall of institutions such as Lehman Brothers, Merrill Lynch, American International Group (AIG), Freddie Mac and Fannie Mae, whose fame and recent glitter dazzle the eyes and attract investors and the... [read full story]