Considering that:

Many of the risks involved in these off-balance sheet activities are indeterminable on an offsite-monitoring basis. (My Bold)

...and considering that many, if not most, of these activities may be based on transactions with institutions registered in tax havens such as The Isle of Mann, Grand Turks, etc., to which the FDIC may not have access...can you define the term "Regulatory Arbitrage?"

Surely, prior to the failure of Bear Sterns, insistence by the FDIC on viewing the complete documentation of transactions based in off shore tax havens would have constituted the very essence of "burdensome regulation."

"It is not necessary to have hope in order to persevere."