The document discusses the causes of the 2008 financial crisis and calls for re-regulation of the financial industry. It notes that the crisis was caused by an unsustainable growth model, risky structured finance products, lack of oversight of banks and shadow banking, and short-term corporate behavior. It argues that re-regulation should strengthen financial safeguards, ensure cooperation internationally, and spread responsibility throughout the investment industry to prevent future crises.

6. Notional amounts of OTC derivatives outstanding (US$bn)

10. The cost of corporate short-termism *purchased by BoA for 50bn; ** purchased 1.2bn by JP Morgan Chase following offloading of toxic assets valued at 29bn onto US gvt; *** 2007 only; **** entered into bankruptcy on 15 sep 5.3 4 Lehman Brothers**** 7.1 5 Morgan Stanley 1.7 1.7 1 Bear Stearns ** 8.2 12.1 25 JP Morgan Chase 11.8 16.8 10 Goldman Sachs 5 7.8 25 7.5 Citigroup 2.2 14.4 1.2 8 Merril Lynch* 1.3 17.5 25 Bank of America Debts to executives Buy-Backs 2006-07 US gvt injection Other funds Non-OECD SWF