Anat Admati, Stanford academic and author of The Bankers' New Clothes, has consistently called for banks to face high capital requirements. She has also been very critical of bank regulation. Below is a short 15-minute clip, where she explains the problems with bank regulation.
My colleague and former PhD student Gareth Campbell has created a website about the British Railway Mania - click here . This episode has been described by the Economist as probably the greatest bubble in human history. Gareth's website provides background on the Mania and posits some explanations for the 'bubble'. In his explanation of why the bubble happened, Gareth places a lot of emphasis on investor myopia regarding future dividends and uncalled capital. His study of investors during the episode does not support the view that this episode was fuelled by naive and irrational investors.