One of the critical findings of the sub-prime and subsequent crisis is about role of regulation.
The role of regulations is to balance the lop-sided accumulation of bargaining power against the citizenry. Specifically, where the interaction is between firms (organizations) and ordinary citizens, the nature and language of regulation becomes important as the firms actively try to usurp bargaining power against ordinary citizens.
The job of regulator, as against regulation, is to be hyper-responsive in protecting the balance in bargaining power equations. Regulator, as against regulation, is speedier and active element introduced into the system to prevent the speedier innovations from disrupting the intended effect of regulations (which are rather hesitant to change).
Here is Senator Elizabeth Warren trying to force this concept on regulators who have become guard dogs of industry they regulate.
I have written along similar lines in my book "Subverting Capitalism and Democracy - Systemic faults that caused the financial crisis."