# Prof. Rosa Abrantes-Metz explains why regulation cannot help prevent another financial crisis

1 Faculty News March 18, 2014 ![Wall Street Journal logo](/sites/default/files/styles/246w/public/assets/images/wsjlogo.jpg?itok=5Qt0z3WX)>

Excerpt from [The Wall Street Journal](http://online.wsj.com/news/articles/SB10001424052702303704304579380961631198726?mod=WSJ_Opinion_LEFTTopOpinion&mg=reno64-wsj) -- "Institutions should not be allowed to issue uncovered contracts—those not backed by an offsetting position to reduce risk—that are prone to runs. Banks could collateralize short-term assets with cash reserves or Treasurys and draw upon these in the event of a run. This would be a simpler, more focused and less resource intensive way to contain systemic risk."

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