As the effects of the 2007–2009 financial crisis became more pervasive, legislators and policy makers debated about the role played by the Federal Reserve as a regulatory agency. While the Federal Reserve argued for more regulatory oversight of the financial system, some policy makers wanted to remove these powers from the Federal Reserve, claiming it had failed to act as a proper regulator. Using the concept of asymmetric information, explain why the debate was centered around financial system regulations. Do you think the Federal Reserve failed in its attempt to properly enforce regulations that were current at the time?