Protecting Financial Markets: Lessons from the Subprime Mortgage Meltdown
Steven L. Schwarcz
Duke University School of Law
Duke Law School Legal Studies Paper No. 175
Why has the recent subprime mortgage meltdown undermined financial market stability notwithstanding the protections provided by market norms and financial regulation? This article attempts to answer that question by identifying anomalies and obvious protections that failed to work, and then testing hypotheses that might explain the anomalies and failures. The resulting explanations provide critical insights into protecting financial markets.
Number of Pages in PDF File: 35
Date posted: December 6, 2007 ; Last revised: February 24, 2008