There are some bright spots for banks these days though including improved ability to handle risks thanks to their larger capital and liquidity buffers.

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As a study by UCLA found in 2007, the human brain is wired to over-estimate the size of risks, underestimate your ability to handle them and downplay the costs of not taking them.

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Using the latest brain imaging technologies, researchers have been able to prove that we human beings are neurologically wired to over-estimate the size of risks, under-estimate our ability to handle them, and downplay the costs of inaction.

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