In particular, future liquidity planning will have to take into account the possibility of a sudden loss of substantial amounts of secured financing. Of course, even the most carefully crafted regulations cannot ensure that liquidity crises will not happen again.
But, if moral hazard is effectively mitigated, and if financial institutions and investors draw appropriate lessons from the recent experience about the need for strong liquidity risk management practices, the frequency and severity of future crises should be significantly reduced. References Allen, Franklin, and Douglas Gale (2007). Understanding Financial Crises, Clarendon Lectures in Finance. Oxford: Oxford University Press. Bagehot, Walter (1873).