Financial systems became too complex and the potential vulnerabilities escaped supervisory focus The role of complexity in financial systems in causing the crisis has been deftly explained by Landau (2009). Complexity increased from two sides, first, the structured products (whose valuation could be hard to establish), and second, the rising interdependence between financial institutions, market players and counterparties.
Mario Draghi: Hearing at the Committee on Economic and Monetary Affairs of the European Parliament Introductory statement by Mr Mario Draghi, President of the European Central Bank, before the Hearing at the Committee on Economic and Monetary Affairs of the European Parliament, Brussels, 17 December 2012.