Many regulations work just fine, because not all regulation are equal, or are
after the fact solutions meantto solve problems.
All regulations suffer from the law of unintended consequences, but arguing the case for doing nothing because of the law of unintended consequences does not make for a credible argument. Doing nothing is subject to the law of unintended consequences.
---
Dealing with financial markets is a special case.
After the S&L scandal of the 80s, bigwigs said the problem was not enough guidance during deregulation.
As long as there are humans trading there will be fraud and corruption of any and all rules. Human nature. There is NO solution except constant vigilance as a way of mitigating the human element.
---
There is no solution to the troubles of financial markets. Oversight is the best we can do and that is all open to the temper of the times.
There is no way to eliminate fraud and destruction in financial markets when greed and the profit motive are allowed to join forces.
Nothing wring with profit. Greed in the big picture, greed itself, is harmless as long as it is not running the system.