However, here too, regulation might provide a solution of last resort and a possibility to look at the business model in the context of other business rules and market circumstances that presently stand in the way of an effective market providing efficient services against optimal prices to consumers and other customers.
Tim Geithner, the first Treasury Secretary in Barack Obama’s administration, argues in his memoirs that the key cause for the crisis was the business model applied by investment and commercial banks, a model which was a combination of a low level of equity and very short-term market funding.