Matthew Richardson is a professor of applied financial economics at NYU's Stern School of Business. He is also director of the Salomon Center, a financial research institution, and is a research associate at the National Bureau of Economic Research. He is serving or has served as associate editor for the Review of Financial Studies, Journal of Finance and Journal of Financial and Quantitative Analysis, and has published papers in a variety of academic journals. He is co-editor of the 2009 book "Restoring Stability: How to Repair a Failed System," as well as the new book "Regulating Wall Street: The Dodd-Frank Act and the New Architecture of Global Finance."
While there is little doubt that regulatory failure played an important role in the recent economic crisis, the solution should not be to walk away and leave systemic risk in place.