Why and How Investors in Financial Instruments Have to Be Protected

Spiru Haret Bucuresti University Annals, Economics Series, Vol. 8, 2008

12 Pages Posted: 19 Jan 2009

See all articles by Claudia Gabriela Baicu

Claudia Gabriela Baicu

Universitatea Spiru Haret

Arnaldo Mauri

Università Degli Studi di Milano

Date Written: January 17, 2009

Abstract

Household savings are to be protected by Authorities for ethical, social and economic reasons. However, inflation, unfair taxation, expropriations without just compensation and financial scandals have repeatedly and heavily affected the wealth of European households also since the end of World War II. This paper deals with recent failures in supervision of financial markets and focuses on Argentina bonds, Parmalat bonds and subprime loans. The paper concludes by analyzing tools to be assigned to domestic supervisory authorities, changes in corporate governance to be introduced and administrative as well as criminal penalties to be enhanced by the new law on saving protection. The main provisions regarding investors' protection established by the Markets in Financial Instruments Directive (MIFID) are also mentioned.

Note: Downloadable document is in Romanian.

Keywords: Default, savings, financial instruments, corporate governance.

JEL Classification: G18, F34, K22

Suggested Citation

Baicu, Claudia Gabriela and Mauri, Arnaldo, Why and How Investors in Financial Instruments Have to Be Protected (January 17, 2009). Spiru Haret Bucuresti University Annals, Economics Series, Vol. 8, 2008. Available at SSRN: https://ssrn.com/abstract=1329393

Claudia Gabriela Baicu

Universitatea Spiru Haret ( email )

Ion Ghica Street nr 13 sector 3
Sector 6
Bucharest, 030045
Romania

Arnaldo Mauri (Contact Author)

Università Degli Studi di Milano ( email )

Milan, 20122
Italy

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