Excess is what brought about this financial crisis. The only way to curb the intemperance is through increased regulation. Right or wrong? This is the question that this month's issue of ASR grapples with. It appears that the answer is not so clear cut. Various proposals from the government, ranging from accounting rules to financial reform legislation, may have the best of intentions, but they also carry with them a host of potential new problems.

A case in point - in this month's cover story, Nora Colomer examines the Obama administration's proposals on securitization, contained in a white paper released on June 17. These propositions for reform - the most prominent of which is a rule requiring originators to retain 5% of their securitized deals - provide a solid platform for securitization, and yet, as Nora asserts, they also increase the cost of capital and threaten the ability of firms to recycle credit, defeating the very purpose that securitization serves.

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