RJA #10b: Reasons

• Reason 1:  The FCIC concluded that failures in regulation and supervision led to the collapse of the financial markets (Financial crisis inquiry report page xviii).
• Reason 2:  Even those who were once proponents of deregulation such as Chris Cox, the head of the SEC, admit that more regulation is necessary in light of the newly developed instruments ( Roger Lowenstein, The end of wall street, page 236).
• Reason 3: The financial crisis could have been averted had the big mortgage banks been scrutinized by  more prudent lending standards (Financial crisis inquiry report page xix and page xxiii).
• Reason 4: The regulations of the banking sector that were in place before Reagan took office were in place solely to protect the investors and consumers of banking products.(http://www.infoplease.com/ce6/history/A0835397.html). 
• Reason 5: The unregulated  use of Derivatives as an investment tool contributed greatly to the instability of the financial system (Financial crisis inquiry report page xxiv).