Banking Law

Having finished their Banking Law class, Harry and Gina were debating on certain issues of the Global Financial Crisis (GFC).

1. In Harry's view, deregulation is the only reason that led to this crisis. Gina was not sure of this, as she recalled from the documentary "Inside Job" that the GFC was driven by various complicated factors. Please help Gina and Harry by briefly identifying the key causes of the GFC.

2. Reflecting on the GFC, Harry nevertheless maintained that the market can take care of itself and that policymakers should refrain from interference and give more freedom to the market participants in the banking and financial sector. To what extent would you agree with his view? Please share your view on the purpose of regulation and explain whether government regulation of banking is necessary