Critics such as economist Paul Krugman and U.S. Treasury Secretary Timothy Geithner have argued that the regulatory framework did not keep pace with financial innovation, such as the increasing importance of the shadow banking system, derivatives and off-balance sheet financing. A recent OECD study suggest that bank regulation based on the Basel accords encourage unconventional business practices and contributed to or even reinforced the financial crisis. In other cases, laws were changed or enforcement weakened in parts of the financial system. Key examples include: COUNT 5
QSN1 What economist believed that regulations did not keep up with financial innovation? ANS1 Paul Krugman QSN2 Who was the U.S. Treasury Secretary dealing with the aftermath of the financial crisis of 2007? ANS2 Timothy Geithner QSN3 Which group's study suggested that Basel accords encourage unconventional business practices? ANS3 OECD QSN4 It has been argued that what did not keep up with financial innovation? ANS4 regulatory framework QSN5 What accords possibly contributed to or reinforced the financial crisis? ANS5 Basel