2008-11-15 — nytimes.com
The most pressing regulatory change with respect to the financial system is to provide the public with information regarding those institutions that have "blown up," i.e. failed in one sense or another. This could be accomplished by establishing an independent investigatory agency or department patterned after the National Transportation Safety Board, e.g., a "Capital Markets Safety Board," in which a dedicated and experienced team of forensic accountants, lawyers and financial engineers sift through the wreckage of every failed financial institution and produces a publicly available report documenting the details of each failure and providing recommendations for avoiding such fates in the future.
I personally don't think it is that complicated. Too much leverage, fraudulent valuations when things start to turn sour, and off-balance-sheet accounting explain most of the failures. Funds being "pushed over the edge" by their prime brokers probably explains the rest (which is why this forensics idea won't get off the ground).
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