While this might impose some costs on the financial sector and increase the cost of financial intermediation, the benefits are sure to outweigh those costs. This is particularly the case when we see the terrible costs of the high unemployment being experienced in a number of countries around the world at the moment in the aftermath of their financial crises.
A change in management practice at financial institutions is surely also necessary in a number of cases, and this must start at the top. The culture around risk management and risk tolerance clearly is an important element of this. The practices that became pervasive throughout the first part of this century that contributed to the excesses need to change.