In recent months and years, there has been much debate about regulation of industries and markets. Especially in financial markets, this is an issue that has come up after the collapse of the housing, financial, and financial derivatives market last year.
Take the financial industry and imagine being a manager of a bank, insurance company or investment fund. What are the main reasons in favor and against regulating this industry? What are the economic benefits and dis-benefits of either approach? What are the micro vs. the macro considerations of selecting an approach of governmental oversight and monitoring?