We learned that there are two central claims about the main causes of the 2008 financial (specifically banking) crisis in the United States. The first claim posits that the development of complex financial derivatives—particularly the development of CDOs and the securitization chain enabled by these CDOs (through the packaging of mortgages and selling them to investors)—as well as the subsequent financing of subprime mortgage loans by large investment banks as the main (and immediate) cause of the 2008 financial crisis. Put differently, this viewpoint argues that powerful investment banks on Wall Street "caused" the banking crisis.
The other claim, however, focuses largely on weak regulation—or progressive deregulation—of the banking sector by successive (i.e. Clinton and Bush II) administrations in the US contributed to the 2008 financial crisis. In other words, this perspective suggests that weak policymaking epitomized by financial and banking sector deregulation by government caused the recent financial crisis. Are these two claims complementary or are these competing arguments that can account for the *securitization chain* that triggered the 2008 Financial Crisis in the US? Please state and defend your answer in no more than 1.5 typed double-space pages.