I will then set out what I believe are some of the key regulatory questions that need addressing, and actions that need to be taken to mitigate the potential blowback from VCs to the rest of the financial system. What is money? Money has formed an integral part of human economic interaction for millennia.
As a result, commercial banks readily granted credit for house purchases to households that otherwise could not have afforded it, and without adequately assessing their creditworthiness or credit default risk. At the same time, in an attempt to achieve higher yields, a number of innovative and increasingly complex financial products were offered, particularly in the United States.