Competition policy economics

Given the recent melt down in the financial and banking sectors from over leverage, excessive deregulation, and bad loans, what government policy or regulation would you suggest to prevent future occurrences? Economies of several nations have been adversely impacted as a result.

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... to make sure that companies compete with each other and, in order to sell their products, innovate and offer good prices to consumers. The risk of not having antitrust rules is that companies will do deals with each other to split up the market between them, or will act in a way which doesn't allow competitors on to the market; and in either case the result is that consumers are denied access to innovative products and pay higher prices ...