After the Crisis: Reforming Financial Regulation
Revista Finanças Publicas e Direito Fiscal
24 Pages Posted: 13 Nov 2009 Last revised: 30 Oct 2010
Date Written: November 12, 2009
The central purpose of this paper is to take stock in the regulatory reform looking with the prism of economic theory. We start by a summary of the basic principles that should preside at the reform. The paper studies the financial regulatory reforms currently proposed by the US administration, the European Union on a comparative basis and reflect on their benefits and limitations. We raise, using comparative law, the problem of level playing field in financial regulation on the global markets. Next we look at the progress achieved so far by the FSB and Basle Committee on Banking Supervisors. The paper also addresses some of the issues that are still largely unresolved: relationship between competition policy and financial stabilization policies, including the question of the “too big to fail”, the problem of derivatives regulation, the problem of reform of rating agencies and the problem of governance and shareholder control. Finally, we identify some of the major outstanding issues in the US and EU.
Keywords: Financial regulation, Banking regulation, Financial reform, EU and US financial comparative law, Financial crisis
JEL Classification: E58, E53, G18, K23
Suggested Citation: Suggested Citation