How to protect bankers from themselves

The story of then 34-year old Moses Stern who - despite having no experience in the real estate business - obtained a $126 million loan from Citigroup to buy a chain of shopping malls demonstrates that bank regulations are needed to protect bankers from themselves. Bank Lending must be made subject to much stricter regulation with respect to loan-to-value limits and the quality and amount of underlying collateral. If there can be margin rules for share buying there is no reason that similar rules cannot be applied to lending - especially in property lending which seems to be to bankers what drugs are to drug addicts. Property lending appears to be easy as there are no tricky judgements to be made about the value of a business and bankers can push up the lending volume quite easily.