One theory suggests that financial companies should be allowed to operate with minimal if any regulatory constraints. It is assumed that company leaders will behave in the best interest of themselves and their stockholders; and if they do not, they will be swiftly punished by free market forces. Such a threat is capable of deterring risky behavior more than any set of governmental regulations. Where applicable, test this theory against facts of Parmalat SpA: An Impressive Milking System”. Consider the roles of and/or impacts on each of the following: (a) regulators, (b) banks, auditors, and rating agencies, (c) company leadership, (d) stockholders and (e) bondholders. Who won if anyone and who lost and did the deterrence theory work at all?