After the global financial crisis, we see the failures in policies, the regulation and supervision of banking institutions. The lack of consistency and coherence of policies in regulation, supervision, and crisis management leads to a need for a reassessment of the global financial structures. The benefits and costs of open financial markets have to be reconsidered after the crisis. The crisis has reflected a number of problems in financial regulation and rules. Also, there is a revolution in the risk management of many financial institutions. The global nature of the integrated financial markets posed a significant risk with serious economic consequences. As a result, a revolution in the international financial structure is needed to stabilize the financial market.

Lessons from the financial crisis for reorganizing financial systems are discussed in this term paper, including macroeconomic policy and financial regulation. To figure out the problem, we have to find out the causes of the global financial crisis by historical perspectives and a combination of different elements common to other financial crises.
The global crisis needs government interventions especially in developed countries.

The crisis pinpointed that the global financial architecture is still far from satisfactory for the closely-integrated financial systems. There are improvements in many areas such as surveillance, information sharing, and liquidity support. This crisis has some similarity but also differences with previous crises. To restore confidence in financial systems is one of the important government interventions. Research in these kinds of hot debate would be useful to help guide policymakers.

Unsustainable asset price increase, excessive debt burdens and the failure of regulation and supervision are the four major courses in the crisis.
Prior to the crisis, house prices increased substantially in the U.S.
The consequences of the U.S. housing boom and its
process is very similar to housing prices dynamic in the previous crises.
The rapid increase in house prices were associated with the growth in credit.
The rapid increase in housing prices was accelerated by rapid increase in credit which lead to a sharply increase in household leverage.

Sustained expansion of rapid credit growth usually correlated with periodic fluctuations in economic activity. Credit booms will increase both the real exchange rate and house prices. During the economic fluctuation, society always destabilizing and has higher uncertainty. At that moment, there are both risky and there is an opportunity. One of the risk is that the new regulations and efforts will do good to those strong countries.
The chance is that leadership and policy regulation will emerge that could reduce disparity among countries and across poverty.

Unsuccessful regulatory reforms will result in unfair situation. Poor financial systems were hard to intermediate huge capital inflows in the account liberalizations. Unsatisfactory financial reforms and poor supervision will lead to currency mismatches and credit risks.
In this crisis, regulatory approaches and oversight of financial innovation were insufficient. Banking system grew without monitoring and resulted in systematic risks. Regulators look down on the conflict of interests and asymmetric information problems. There is a chain reaction problem in banking services and systemic risk. The authorities put emphasis primarily in the liquidity of the whole financial system.
The lack of communication between regulators and the lack of transparent procedures for the key of global financial systems prohibited the efforts to prevent the crisis.