What steps can government agencies or policymakers take to strengthen regulations and oversight to prevent securitization fraud in the future?

Government agencies and policymakers can strengthen regulations and oversight to prevent securitization fraud by implementing stricter transparency requirements, mandating comprehensive risk disclosure, and enhancing due diligence standards for financial institutions. They can also establish whistleblower protection programs to encourage reporting of fraudulent activities. Increasing penalties for fraudulent behavior and conducting regular audits and examinations of securitization processes are essential. Collaborating with international regulatory bodies to establish uniform standards and monitoring systems can further bolster the effectiveness of regulatory efforts in preventing securitization fraud and safeguarding investor interests.