4 page essay Example | Topics and Well Written Essays - 1000 words

4 page - Essay Example An example is given where the regulators never reacted to the extra ordinary increase in the financial institutions leverage. this never reacted to the movement of assets worth trillions of dollars from banks balance sheet. This shows how the regulators did not do their work. Increasing the regulators power without checking the problem and trying to regulate it helps in solving nothing. Barth, Caprio and Levine studied that the governance of financial regulation the system that is supposed to design, implement and reform financial policies contributed highly to the crisis faced in the United States. The senior most officials are blamed for repeatedly designing implementing and maintaining policies that destabilized the financial markets. The Financial Guardians maintained the same policies even after learning that these policies were increasing the instability of the financial system in the country. Also, even after the authorities had discovered about what was happening, the regulators did not adjust their policies even when they had the time and power this came to one conclusion that the regulators never worked ii the interest of the public but their own. The group indicated in their book that the failures of the respective governments in the governance of the financial regulations played a crucial role in crisis by being part of the destructive policies created and maintained by the regulatory agencies. The proposals laid out by the institutions have not addressed the weighty issues including their weaknesses with governing financial regulation. The public is also not involved in the process as there is no mechanism laid down through which people can obtain well laid informed assessment of the financial institution. Since the public are the ones affected by these policies, it is highly recommended they get involved with the process. It is hard