I would like to ask for help to answer this questions :

• Why are financial institutions “fragile”? What consequences does this fragility have for (i) the financial system; (ii) the real economy?

• How, if at all, can financial regulation mitigate the fragility of financial institutions?

• How, if at all, can financial regulation mitigate systemic risk?

• What effect, if any, does the participation of financial institutions in markets as counterparties have on the fragility of these institutions? Would restricting their participation have an impact on market efficiency?

• Are measures that reduce the fragility of financial institutions likely also to protect consumers?