A case can be made that it was the lack of regulation of the banking sector that led to the financial crisis of 2008-9. Regulation today, both in the US and UK, is dedicated to preventing such an occurrence in the future, and in many cases, this regulation is based on increasing transparency and accountability in the banking sector. In other words, today, the causes of the economic crisis are being examined closely, and governments worldwide are working towards averting future disasters, by analyzing exactly what went wrong. There were many reasons for the financial disaster of 2008-09, and a lack of proper regulation may have been one of them.In looking at the original causes of the crisis, one has to look not just at the banking industry, but also its relationship as an industry to housing and mortgage concerns, especially in the US, but also in the UK. The banking system has had its critics, but current regulation in the US under Obama and UK under Brown has also made significant progress in averting a continuance of worldwide chaos, by increasing regulation and legislative power. The mortgage industry is still currently affecting the consumer and banks in complicated ways and was one of the main scapegoats of the 2008 financial crisis and recession. In the US, President Barack Obama focused less on blame, and more on recovery, when he saved AIG and other companies, along with several major banks, from disaster. There was a lot of media coverage about it and there was at times the atmosphere of panic, with economists have over-valued the impact of the mortgage industry and also seeing this sector through a sort of blinder effect, due to its proximity to financial sectors. The same situation played out in the UK under Brown. As one source states, Shock waves from the collapse of the subprime mortgage market have been shuddering through segments of the economy for months. But this month, with the announcement of as many as 12,000 layoffs at the nation’s largest home mortgage lender, an unemployment report that showed net job losses for the first time in four years, and some economists are predicting a recession (Larsen, 2007).