"Financial regulation may be the cleanest test of regulation in general, in the sense that if regulation works anywhere, it should work in the financial sector. Here, regulatory transparency is high: Banks report vast quantities of data to regulators, and regulators are easily able to check and audit the numbers. Regulatory compliance is even higher; instances of fraud are rare and newsworthy, not commonplace. But does financial regulation work? Can it work?" Read more. "Why Financial Regulation is Doomed to Fail" Philip Maymin Econlog, March 7, 2011. Image by vegadsl / FreeDigitalPhotos.net.