We are still in the midst of this effort, which is being conducted with a broad mandate to identify and revise where possible outdated, unnecessary, or unduly burdensome regulations, including those that apply to community banks. The agencies are carefully considering public comments.
So there was a lack of market discipline, poorly aligned incentives and lack of regulatory monitoring of attendant risks. The sub prime mortgage crisis reached a critical stage during September 2008, characterized by severely contracted liquidity in the global credit markets and insolvency threats to investment banks and other institutions.