Effectiveness of the legal regulation of the banking systemOrder DescriptionThe Problem StatementThe financial crisis that started in 2007 was precipitated by the banks, causing some failing banks to be bailed out by the state. A related issue has been the debate over whether bankers should be paid their bonuses in the current climate and the moral and ethical issues that arise from this from societys point of view. The government, which represents the people, has to weigh up their interests and the interests of the industry which employs a large number of people.The crisis has raised the question of whether there is a need for tighter regulation of the banking system. A major difficulty is that banking in the 21st century is a globalized industry, any action by one state may have international and unintended consequences.Explain whether the current legal regulation of the banking system is effective.