We know now the causes of the financial crisis – excessive risk taking by banks encouraged by an incentive structure that was short-term and asymmetric (rewarding high returns but not clawing back if things went wrong). This culture was exacerbated by an over-trusting regulatory regime, an insufficiently independent credit rating industry and institutional investors who didn't exercise necessary oversight. Collectively, they failed to ask the tough questions that might have reined in the excesses of the bankers.

Progress Online, 7th April 2009, read more...