A Simpler Approach to Financial Reform

6 Pages Posted: 28 Aug 2013 Last revised: 26 Feb 2014

See all articles by Morgan Ricks

Morgan Ricks

Vanderbilt University - Law School; European Corporate Governance Institute (ECGI)

Date Written: August 1, 2013


There is a growing consensus that new financial reform legislation may be in order. The Dodd-Frank Act of 2010, while well-intended, is now widely viewed to be at best insufficient, at worst a costly misfire. Members of Congress are considering new and different measures. Some have proposed substantially higher capital requirements for the largest financial firms; others favor an updated version of the old Glass-Steagall regime. This paper offers up a simpler approach, one that centers around the financial sector’s short-term funding. The simpler approach would be compatible with other financial stability reforms, but it is better understood as a substitute for Dodd-Frank and other measures.

Keywords: financial stability, financial reform, Dodd-Frank, short-term funding, wholesale funding, banking panic, shadow banking

JEL Classification: E42, K23

Suggested Citation

Ricks, Morgan, A Simpler Approach to Financial Reform (August 1, 2013). Vanderbilt Public Law Research Working Paper No. 13-42, Available at SSRN: https://ssrn.com/abstract=2316900 or http://dx.doi.org/10.2139/ssrn.2316900

Morgan Ricks (Contact Author)

Vanderbilt University - Law School ( email )

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Nashville, TN 37203-1181
United States

European Corporate Governance Institute (ECGI) ( email )

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