Question

What could have been done to prevent the bank, brokerage houses, and their respective executives from needing a government bailout?

Answer 1

The best and only way that could have been done to prevent banks needing a government bailout was to ensure proper monitoring of banks and their performance along with making sure that correct and efficient financial transactions are taking place. For e.g. in case of loans given out, correct amount of security deposit is taken.

Also, regular financial checks must be taken up by the FDIC of such institutions to make sure no loss making activity is taking place and thus bailouts are not needed.