Protecting Financial Markets: Lessons from the Subprime Mortgage Meltdown

35 Pages Posted: 6 Dec 2007 Last revised: 24 Feb 2008

Steven L. Schwarcz

Duke University School of Law

Multiple version iconThere are 2 versions of this paper

Date Written: November 2007

Abstract

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.

Suggested Citation

Schwarcz, Steven L., Protecting Financial Markets: Lessons from the Subprime Mortgage Meltdown (November 2007). Duke Law School Legal Studies Paper No. 175. Available at SSRN: https://ssrn.com/abstract=1056241 or http://dx.doi.org/10.2139/ssrn.1056241

Steven L. Schwarcz (Contact Author)

Duke University School of Law ( email )

210 Science Drive
Box 90362
Durham, NC 27708
United States
919-613-7060 (Phone)
919-613-7231 (Fax)

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