Do you genuinely think this is best answered with a simple, top-level "regulation does/doesn't work" argument? The question has no answer, and you gain almost no understanding of regulators by pondering it.
Anyway, even the banking circa 2008 story is not simple.
The banking "regulators" in action at the time were central basically two sets of institutions, with kinda unrelated goals. The first & primary is "central banking," which uses banking regulation and stuff to stabilise currency value (inflation targeting). The second institution is things like the SEC,"consumer" protection against fraud.
The reason the currency regulator(s) get all the attention, independent authority and such is monetary history. Currencies crashed a lot, even gold & gold standard ones.^ In recent decades, this is rare. Even during the crisis, we saw very little hyperinflation around the world.
Maybe they shouldn't have this mandate. Maybe different monetary policy would be better. But, I think it's hard to deny that the big-daddy financial regulators (central bankers) do the job they were built to do successfully... currencies are stable, even under very large debt loads.
Anyway, even the banking circa 2008 story is not simple.
The banking "regulators" in action at the time were central basically two sets of institutions, with kinda unrelated goals. The first & primary is "central banking," which uses banking regulation and stuff to stabilise currency value (inflation targeting). The second institution is things like the SEC,"consumer" protection against fraud.
The reason the currency regulator(s) get all the attention, independent authority and such is monetary history. Currencies crashed a lot, even gold & gold standard ones.^ In recent decades, this is rare. Even during the crisis, we saw very little hyperinflation around the world.
Maybe they shouldn't have this mandate. Maybe different monetary policy would be better. But, I think it's hard to deny that the big-daddy financial regulators (central bankers) do the job they were built to do successfully... currencies are stable, even under very large debt loads.
The job you give the regulator matters.
^yes, yes, controversial.