Brits make FCIC look like lipstick on pig

This is because revenue and profit can be received by banks
before the costs are realised. A borrower may pay interest for a
while, but it is not until they repay in full, or default, that the cost of
the lending is known. It is for this reason that so much regulation
centres on the prudence with which bank lending is made. It is
also the reason that governance systems, such as a statutory
audit, have been established to ensure bank boards are not
prone to making injudicious loans, or to recognising profit before
it has been earned10.
A second feature is one which economists refer to as
'asymmetric information'. These are situations where the seller
knows more about the product than the purchaser, and where the
purchaser is unable to judge which seller will give them the best
deal, and hence can be taken advantage of11. These situations
occur throughout the financial services industry, and were clearly
articulated in the Commission’s exchanges with Gill Kirk, a former
branch employee of one of our large banks, who was concerned
that the incentive structures at banks encouraged the mis-selling
of financial products.
COMMISSIONER Would the customer know that [they had
purchased a poor product?]
GILL KIRK I would say that the customer wouldn’t know that
they’d been sold the wrong product. And when you’re just in
front of the customer and selling them, you wouldn’t... know that
the product that you’ve sold them wasn’t the right one, because
you weren’t then involved in the future of that customer, you
were just involved in selling the product.

Jon Danielsson, London School of Economics
‘The problem with banking is [it is] so
complicated that any financial institution
can make any number look any way it
wants, meaning that if the government
starts to target anything, the banks find
a way to bypass the target’

Riversider: Good post.

The London School of Economics, a real brick and mortar building with real-life experts (as opposed to "the Chicago School", which is a construct of non-thinkers) gets it correctly, and reports it .

There is no "Chicago-lite".