Shortcomings in financial system regulation and supervision regimes are now under intense scrutiny everywhere, following the global financial turmoil that exacted heavy tolls in wealth destruction and recession, with particular severity in the mature advanced economies. Ironically, it was the placid stability of the preceding several years that lulled institutions, markets and regulators into complacency and inaction about the mounting global imbalances and the inordinate and the inordinate risk build-ups in the financial system eventually precipitating institutional failures, market freeze-ups and severe credit crunch. The gross disregard of basic cautions in risk-taking in large globally active financial institutions was prompted by quest of quick private gains for small inner circles in top managements and boards, imperiling longer term viability of the institutions and hurting interests of general shareholders and of broader citizenry as stakeholders in the financial system.