I would briefly allude to the crisis to provide a context for some of the issues I would be touching upon. I recall a quip, “Just when we thought we knew all the answers, someone changed the questions” and I think that the saying best describes what the crisis has done to the hitherto accepted regulators’ wisdom.
The role of regulators has always been very challenging, as they need to keep running just to stay put in a fast evolving financial landscape and have to run harder and faster, to be ahead of the curve. If anything, the crisis has made their role that much harder.