Question

Many politicians have responded to the financial crisis by calling for more regulations and closer oversight...

Many politicians have responded to the financial crisis by calling for more regulations and closer oversight of banks. Do you think more regulation will prevent the occurrence of another financial crisis? Why or why not?

Homework Answers

Answer #1

In my view, more regulation can prevent the occurrence of another financial crisis but the major issue is the proper implementation of that regulation or new oversight policies. This would reduce excess leverage taken by the banks and financial institutions and also put more obligation and responsibiliy on them which would discourage the weak policies and malpractices taken by the banks or financial institutions which should prevent financial crisis.

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