Investors became more willing to accept risk, partly in order to maintain returns as risk free interest rates dropped, and partly because the risks seemed smaller. From a monetary policy perspective, the past decade highlighted some of the challenges that we face in trying to run an independent monetary policy in a connected world.
They would also be banned from engaging in proprietary trading operations for their own profit. Thus, the risk of bank failures would be significantly reduced. At the same time, a cap would be put on the size of banks to reduce their systemic relevance.