The goal of government regulation of financial services industries to maintain the integrity and stability of financial systems, thereby protecting both depositors and investors. Regulations include prohibitions against insider trading, lending by management to itself or to closely related entities (a practice called “self-dealing”), and other transactions in which there is a conflict of interest. Yet in less than two decades of deregulation has transformed the world’s financial markets. It spurred competition and growth in financial sectors and allowed capital to flow freely across borders, which boosted the economies of developing countries.

It also aggravated the global financial crisis that began in 2008. What do you see as the “dark side” of deregulation, in terms of business ethics? What do you think Adam Smith, one of the first philosophers of capitalism, meant when he warned against the dangers of “colluding producers”? Do you think this warning applies to the financial services sector today?