Financial crises over last three decades have left many conclusions and things to learn. Some economists blame regulations, especially deregulation which occurred during 1990s. Meanwhile some blame unethical practices and greed for money. However most of these cases managers are blamed for their greed and lack of ethics in the market. Unless managers have attempted to do scandals, greed can be good. Because managers are tempted for their bonuses, and bonuses depends on profits which maximize shareholder wealth the fundamental mission of a financial organization. So what is really wrong? I think the problem is not with ethics or regulations, but again issues with managers, because managers have ignored the "long term" shareholder wealth maximization. During past credit crunches they have all looked at short term and have not considered the risk in long term.
On the other hand if regulators can identify financial bubbles, where all most every participants in the market have unusual growth while the market size is the same, then regulators will need to look more carefully than complementing the market growth.
Source : http://www.ft.com/cms/s/0/dd14e65e-28e6-11e0-aa18-00144feab49a.html#axzz1pUfjNBjF
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