Adam Smith was not just a pioneer of political economy; he was also a moral philosopher who aspired to write a systematic theory of law. Though he never completed the project - he asked the executors of his estate to burn his notes - his major published works contain a multitude of passages from which significant portions of his legal theory can be reconstructed. Many of Smith's views are of great relevance to present-day issues. He proposed financial regulation restricting the freedom of individuals, which he likened to the necessity of equipping buildings with firewalls. In light of the global firestorm caused by the most recent banking crisis, Smith's ideas appear strikingly modern.