Causes of Financial crisis a Regulatory failures: failures of making sure institutions have sufficient assets to meet their contractual obligations through reserve requirements capital requirements and other limits on leverage a Fraud: companies have attracted depositors with misleading claims about their investment strategies or have embezzled the resulting incomeC f lC auses o f Financia l Crisis  Regulatory failures:failures of making sure institutions have sufficient assets to meet their contractual obligations, through reserve requirements, capital requirements, and other limits on leverage  Fraud:com panies have attracted depositors with misleading claims about their investment strate gies, or have embezzled the resulting income