This is patently false. Banks and the financial sector in general are already heavily regulated. That's part of the problem. The comment below from Greenspan about banks regulating themselves is absurd (and he knew it). The banks were encouraged and even ordered to act against the interests of their customers by the very regulatory agencies you claim are required. They were encouraged to ignore their self-made criteria for loans and financial products and instead offer much more risky ones, with the implicit understanding that government would bail them out. Crony capitalism can't be fixed by government. Government is the cronies.