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Financial regulators and politicians unsuccessfully maintained the safety and soundness of the U.S. financial system not only because they lacked the proper tools but also because they lacked the proper incentives. While filling regulatory gaps and improving supervisory tools are worthwhile...
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There was a systemic failure of financial regulation: senior policymakers repeatedly enacted and implemented policies …, unclear lines of regulatory authority, capital account imbalances, or a lack of information by regulators. Rather, it …
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