In the 2007-08 crisis, many different kinds of financial institution failed or were saved only by state intervention. Large financial conglomerates – Citigroup and Royal Bank of Scotland. Investment banks – Bear Stearns and Lehman. Smaller retail banks without investment banking arms (but with active treasuries) – Northern Rock and Sachsen Landesbank. Diversified banks, such as Fortis, and specialist lenders, such as Hypo RE. Public agencies, such as Fannie Mae and Freddie Mac. America’s largest insurer, AIG. Taxpayers will be footing the bills for a generation.

All these businesses exemplified management hubris and, in almost all, the failure was the result of losses in activities that were peripheral to their core business. Otherwise they had little in common. The variety of institutions is matched by the variety of regulators. The list of public agencies supervising failed businesses is much longer than the list of institutions.