Financial regulations failed to stop the Global Crisis or prevent it from becoming so serious. In this video, Franklin Allen argues there is insufficient theoretical and empirical background on which to base regulations. Regulations tend to be introduced as immediate responses to a problem, and research needs to feed policy in order to provide regulators with the necessary theoretical and empirical tools to react efficiently. This video was recorded at the "Financial Regulation Initiative" conference organised by CEPR and held in London on 30 September 2015.