Mr. Klaus Regling:

Yes - not only banks, but financial markets in general. It does not mean there are no rules at all. There were rules, but they were much lighter than what we see today after we learned lessons. In particular, the approach of supervisors was too hands-off. There were not many on-site inspections. Today there is a widespread view that the manner in which supervisors deal with banks should be more intrusive and assertive. There is also a cultural issue which goes beyond rules and regulations. It is different from the time when the view was that banks and financial market participants would self-regulate themselves to a large extent. The view was that they would do it because it was in their own interests. They did not want to go bankrupt or get into serious trouble. That was a widespread view and that is why there was light-touch regulation. There was confidence in self-regulation. That changed completely after the crisis.