To find out more, including how to control cookies, see here: Cookie Policy. Facebook Page. In the United States, financial institutions are regulated by government agencies that promulgate rules and regulations for the industry, and who also monitor those institutions for compliance. Your bank loans your money out to others at a cost to the lendee, in the form of an interest rate think: mortgages, student loans, car loans, credit cards, etc. They also had no idea which other banks had a lot of bad debt which became known as toxic assets.