There is no denying that regulations  4  BIS Review 153/2008  have to keep pace with innovations. But in doing so, we must be mindful of the risks of over tightening regulations so much that they stifle innovation. While on the subject of reforming regulation, there is also the larger question of risk modelling.
True, the probability of risk follows a normal distribution – popularly called the bell curve. But our regulatory regimes have been tailored to respond to the central, higher probability portion of the bell curve. Typically, we ignored the black swan lying in the long tail of the curve. We now know from the benefit of hindsight that this was a fatal flaw.