34 Pages Posted: 18 Mar 2008 Last revised: 5 Jun 2012
Why did the recent subprime mortgage meltdown undermine 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 by examining hypotheses that might explain the anomalies and failures. The resulting explanations provide critical insights into protecting financial markets.
Suggested Citation: Suggested Citation
Schwarcz, Steven L., Protecting Financial Markets: Lessons from the Subprime Mortgage Meltdown. Minnesota Law Review, Vol. 93, No. 2, 2008; Duke Law School Legal Studies Paper No. 175. Available at SSRN: https://ssrn.com/abstract=1107444