There are a few areas where action is called for, such as the regulatory treatment of sovereign bonds. But apart from that, we should not tighten the screws of regulation further. Financial institutions need regulatory certainty, and they need a period of respite.
This means that that framework governs the way the economy functions and also the incentives that motivate individuals. When there is no trust, transactions do not take place. An OECD study from 2011 shows that mutual confidence is larger in the richer countries where there are fewer inequalities in the distribution of income.