As we know from our own history, if there is an incentive for risk-taking activity to occur (like low interest rates, for example), it will eventually occur even if it has to migrate to markets and institutions where fewer regulatory impediments are in place.
To put this point at its most extreme, it could be argued that that the overall environment dictates the appetite for risk-taking financial activity, and that the nature of regulation simply determines the location of the activity. That is, as I say, extreme, but there is some truth to it. Looking ahead Where then does this leave us?