The financial capitalism has largely determined the direction of economic and so- cial development in the last four decades. Addressing key aspects of financial capitalism, the author reviews its impacts on macroeconomic and social indicators, and its potential for transformation. Finance-dominated capitalism and financialization of all aspects of social life can stifle economic growth, favor capital at the expense of labor and the state, undermine democracy, increase inequality and cause economic and social instability. Politically, financial capitalism is underpinned by the imperative of neoliberalism. This flawed model of development and the deregulation of the financial system have inevitably led to crisis Instead of de- regulation, today’s capitalism needs regulation to coordinate and guide the market economy to ensure broader and longer term interests.