have there been any diaries describing the kinds of "real regulation" that would have been able to overcome the greed and chicanery of bankers to prevent LTCM and the current crisis? Truth unfolds in time through a communal process.
Amongst the simplest of bank regulation is for example to require the bank to put "real" money aside proportional to loans they make to certain kind of counterparty. Regulator could decide that loans to hedge funds and counterparty that have no public reporting/regulation requirements would face a higher "put aside" rate than loans to other kind of counterparties (like consumers, non financial businesses, etc...).
