"Banks failed in 2008 because individuals with knowledge of risks were not connected to individuals who

had the incentive and power to take corrective action. Evidence of this problem is provided by reports

from the Lehman liquidator and The Financial Crisis Inquiry Commission. Improved communications

and control within and between banks, their regulators, and stakeholders can be achieved with network

governance. Lawmakers and/or regulators can introduce network governance by requiring bank

shareholders to amend corporate constitutions to introduce a division of power with checks and balances

from stakeholders who can take on the role of supplementary and/or co-regulators. Such decentralized

regulatory architecture is how simple living creatures sustain their existence in complex, dynamic and

unpredictable environments without suffering communication errors and/or overload. The natural science

of communication and control identified in 1948 by Wiener explains why centralized control and

communication systems are not found in nature. This science of regulatory systems explains why

regulators and large firms fail to reliably manage, regulate or govern complexity. Examples of large

network governed firms provide evidence that they obtain sustainable operating advantages over business

cycles. This indicates how natural systems provide design criteria to enhance the efficacy of business

operations, governance and regulation."

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