"All shipments to Lululemon went through a certification process which Lululemon had approved, " Eclat Chief Financial Officer Roger Lo said in an interview.

WSJ: Yoga-Pants Supplier Says Lululemon Stretches Truth

For similar reasons, Andrew Lo, director of MIT's Laboratory for Financial Engineering, suggests separating regulation from forensics, as happens in the airline industry.

ECONOMIST: What regulators should do now

Mr Lo has a novel idea for future crises: creating a financial equivalent of the National Transport Safety Board, which investigates every civil-aviation crash in America.

ECONOMIST: Financial economics