First, there are occasions when the policy imperatives of the regulators and supervisors do not fully align with the strategic business goals of the banking  6  Committee on Global Financial System, 2004, 'Foreign Direct Investment in the Financial Sector of Emerging Market Economies', Report of a Working Group established by the Committee on Global Financial System, Bank for International Settlements, Basel.
Investors' confidence in financial products was first shaken in the spring of 2007 when prices of some tranches of subprime RMBS fell in a way unthinkable previously. This raised suspicion that information provided by rating agencies and utilized by financial institutions in their sales pitch was, after all, wrong.