Why Governments Need Strict Regulations?

For the past few years, this topic is in huge debate that whether financial markets should regulate or governments should take control over them by making strict regulations. When the word regulation comes, its seems very ugly to many people, especially when it is associated to managers and stockholders, they always see rules or regulations as burden on them imposed by government to damage their efficiency and innovation. But according to me if the financial markets and institutions are controlled by government then it is beneficial for them as well as for the economy as well.

The government plays very crucial role between brokerage institutions and consumers. They make rule so that public and economy of the country is safe. To motivate our self towards this topic furthermore we can always take example of our childhood. As child, we all use to have lot of fun but there were always certain limits set by our parents. They always had some constraints set for us so that we are safe in our childhood and in future. To discuss this in depth I have few things gathered through the past rules regulations and history of this debate since now.
Governments has lot of agencies working under it to look over and regulate financial institution and markets. One of them was FDIC abbreviated as Federal Deposit Insurance Corporation, every banker use to hate this words because they thought they are so demanding as they always ask you for reports, more capital and good public service. Moreover, no new bank was able to enter the industry without proper authorization from the government. Even more the deposits and financial policies sold to public to increase funds was to be sanctioned by regulatory agency first. There are so many reasons that government supervision is