Well, not so sure this is a virtue of the regulatory system -- mind you at the time there were a ton of regulations contributing to system instability (like law

Well, not so sure this is a virtue of the regulatory system -- mind you at the time there were a ton of regulations contributing to system instability (like laws preventing interstate banking). Can also be said about this crisis: Had regulators not been so thoroughly captured, there's an argument to be made that banks would be a lot more alert to these sorts of systemic risks.