To put it another way, governments set up a system that in effect treated bankers as naughty children or ravenous puppies who could not be trusted not to eat too much of the dangerously fattening stuff - and regulators were to be the health conscious parents.
The perhaps predictable result is that the bankers lived up to the low expectations of their common sense, and devised ever more clever ways to raid the biscuit tin without being seen. And the regulators turned out to be the worst kind of parents: ignorant of what was really happening in the world; prescriptive in all the wrong ways.
Under the Basel system, regulators ordained - for example - that banks could lend more relative to their capital if they were providing mortgages to house buyers than they could if they were lending to a giant multinational company: regulators deemed it was less risky for a bank to provide you with a mortgage than to lend to Tesco.
Or to put it in the appropriate jargon, the risk weighting for mortgages was - and is - much lower than for corporate loans.