Financial regulations will always fail.

Financial regulations will always fail because they are based on wrong premises. Lawmakers assume that regulating banks, financial markets, financial institutions is the same as criminal law. That is to say, civil law, white collar crimes are the same as criminal crimes.
Wrong.
Criminal law is about crimes that have been committed from the beginning of time. Murder, rape, assault, torture, etc., people have been doing to each other forever. When things go wrong in the financial markets it is always something new, like the collapse of the mortgage based derivative bond markets that caused the recent financial collapse.
Lawmakers are like generals who are hung up on fighting the last war. They make regulation and laws to prevent yesterday's financial crime, but the new or next crime is the one that will cause all the trouble.
Instead of making backwards looking laws and institutions, what lawmakers should to is create a forward looking one that looks at new products and services to see if they are real and sound economically.