The New Crisis for the New Century: Some Observations on the 'Big - Picture' Lessons of the Global Financial Crisis of 2008

North Carolina Banking Institute, Vol. 13, p. 157, 2009

9 Pages Posted: 5 Aug 2011  

Saule T. Omarova

Cornell University - Law School

Date Written: March 2009

Abstract

Two key factors made the financial crisis of 2008-09 qualitatively different from all prior crises and panics. First, it was the world's first truly global financial crisis. Second, it was a crisis rooted fundamentally in the successes of financial innovation and an unprecedented complexity of financial products, which resulted from such innovation. Each of these unique characteristics of the current crisis has major implications from the perspective of regulatory reform in the financial services sector, both domestically and on the international level. This essay sketches in broad strokes some of these high-level implications.

Keywords: financial crisis, financial regulation, regulatory reform, financial innovation

Suggested Citation

Omarova, Saule T., The New Crisis for the New Century: Some Observations on the 'Big - Picture' Lessons of the Global Financial Crisis of 2008 (March 2009). North Carolina Banking Institute, Vol. 13, p. 157, 2009. Available at SSRN: https://ssrn.com/abstract=1905800

Saule T. Omarova (Contact Author)

Cornell University - Law School ( email )

Myron Taylor Hall
Cornell University
Ithaca, NY 14853-4901
United States

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