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The 111th Congress has taken a broad approach to capturing the lessons on financial crises as part of the effort to evaluate possibilities for revamping the U.S. financial regulatory system. Latin America stands out as one region that has survived multiple financial crises, and in the aftermath of such devastation, many countries undertook comprehensive regulatory reform. Although a smaller developing economy, Chile provides one important example. Following two financial crises, one the result of extreme over regulation, the other of catastrophic under regulation, Chile redesigned its regulatory system in 1986. Since then, it has had one of the most stable financial systems in Latin America and has overcome regional and global financial crises when other countries in the hemisphere did not. In so doing, new-found soundness of the banking system has not compromised bank profitability, reflecting modernization and efficiency gains that paralleled development of effective prudential regulation and oversight. Chiles success rests on a 1986 overhaul of the General Banking Act. Conceptually, reform had two fundamental principles: simplify and streamline prudential regulation and supervision. Under the framework developed in the G-30 report, The Structure of Financial Supervision, Chile adopted what might be classified as an integrated approach to regulation. The ...