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Banking law

QUESTION:-
‘regulation, or any form of official intervention, is only justified in the presence of a substantial market imperfection, and where the cure is not worse than the original disease’

[Howard Davies ‘Why Regulate? http://www.fsa.gov.uk/Pages/Library/Communication/Speeches/1998/sp19.shtml ]

With reference to the above statement, critically evaluate the rationales for banking regulation. How far do such rationales explain the UK post-crisis regulatory response?

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