14,861 research outputs found
Did We Tame the Beast: Views on the US Financial Reform Bill
Prof. Lawrence Baxter takes a microscope to the âDodd-Frankâ Bill (Dodd-Frank Wall Street Reform and Consumer Protection Act, H.R. 4173) finding a veritable âMicrographiaâ of doubt. The Bill was devised to address problems associated with the global financial crisis of 2007-2009. This paper was written in anticipation of the US Financial Reform Billâs passage through Congress. The legislation has since been enacted as Public Law No. 111-203, signed by President Obama on July 21, 2010
Fiduciary Issues in Federal Banking Regulation
It is argued that the fiduciary duty being claimed by banking regulators against depository institutions arising out of the S&L scandal is actually a distinct statutory duty
Adaptive Financial Regulation and RegTech: A Concept Article on Realistic Protection for Victims of Bank Failures
Frustrated by the seeming inability of regulators and prosecutors to hold bank executives to account for losses inflicted by their companies before, during, and since the financial crisis of 2008, some scholars have suggested that private-attorney-general suits such as class action and shareholder derivative suits might achieve better results. While a few isolated suits might be successful in cases where there is provable fraud, such remedies are no general panacea for preventing large-scale bank-inflicted losses. Large losses are nearly always the result of unforeseeable or suddenly changing economic conditions, poor business judgment, or inadequate regulatory supervisionâusually a combination of all three.
Yet regulators face an increasingly complex task in supervising modern financial institutions. This Article explains how the challenge has become so difficult. It argues for preserving regulatory discretion rather than reducing it through formal congressional direction. The Article also asserts that regulators have to develop their own sophisticated methods of automated supervision. Although also not a panacea, the development of âRegTechâ solutions will help clear away volumes of work that understaffed and underfunded regulators cannot keep up with. RegTech will not eliminate policy considerations, nor will it render regulatory decisions noncontroversial. Nevertheless, a sophisticated deployment of RegTech should help focus regulatory discretion and public-policy debate on the elements of regulation where choices really matter
Fundamental Forces Driving United States and International Financial Regulations Reform
Multiple forces create a systemic crisis of the proportions of the Global Financial Crisis of 2008. Global and domestic financial reform is a difficult and perplexing task, one that is likely to take many years, and one that will surely continue to be shaped by a diverse range of forces. Recent measures remain incomplete and in some cases are even proving to be misdirected. This article considers seven fundamental forces shaping actions on future reform, specifically the (1) long term impact of the Crisis (and all financial crises); (2) increase in the âfinancializationâ of the global economy, seemingly disproportionate to the growth in the real economy; (3) dramatic increase in financial interconnectedness worldwide, accompanied by a growing complexity in financial institutions and the regulatory framework, all of which could be becoming unmanageable; (4) âhuman factorâ in finance, which tends to confound our assumptions about market behavior; (5) growth in the critical yet little understood and regulated âshadow banking system;â (6) deep technology revolution, which continues to transform the dynamics of the global economy; and (7) ânext convergenceâ between Western and âemergingâ economies, which is changing the global economic profile and presenting profound new challenges to financial refor
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