Reconnecting the Financial Sector to the Real Economy: A Plan for Action
9 Pages Posted: 17 Sep 2014
Date Written: September 17, 2014
Informational asymmetries, misaligned incentives, and artificially elongated chains of intermediation have created a disconnect between the financial sector and the real economy that is detrimental to the public interest. Courts and regulators are increasingly intervening to break the cycle. Fiduciary law offers a conceptual framework both for understanding and responding to this trend. This article argues that the financial sector, rather than waiting for this trend to develop and reacting to new rules in a piecemeal way, should be proactive and shape the way in which the trend develops.
Keywords: Collaboration Strategies, Fiduciary Law, Financial Sector Reform, Pension Fund, Social Utility
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