“Many firms were too highly leveraged, took on too much risk and did not have sufficient resources to manage those risks effectively in a rapidly changing environment,” Morgan Stanley Chairman John Mack, 65, will tell the panel. “The financial crisis has also made it clear that regulators simply didn’t have the visibility, tools or authority to protect the stability of the financial system as a whole.”
For those, who is not familiar with English. Free translation,смысл ,spoken by first person Morgan Stanley, is that, which is well known to everyone. A lot of risk with high debt burdens( as well as shoulders) in a rapidly changing market leads to disaster. As well as, if the regulators do not have the understanding and ability to control what is happening, then, in general, such a financial system cannot be stable.
P.S. Ignoring rules isn't just among traders, it is rather a property of people
