Securitization and Post-Crisis Financial Regulation

25 Pages Posted: 11 Dec 2015 Last revised: 15 Oct 2016

Date Written: October 13, 2016

Abstract

There are few types of securities as internationally traded as those issued in securitization (also spelled securitisation) transactions. The post-financial crisis regulatory responses to securitization in the United States and Europe are, at least in part, political and ad hoc. To achieve a more systematic regulatory framework, this Essay examines how existing regulation should be supplemented by identifying the market failures that apply distinctively to securitization and analyzing how those market failures could be corrected. Among other things, the Essay argues that Europe’s regulatory framework for simple, transparent, and standardised (“STS”) securitizations goes a long way towards addressing complexity as a market failure, and that the United States should consider a similar regulatory approach.

Suggested Citation

Schwarcz, Steven L., Securitization and Post-Crisis Financial Regulation (October 13, 2016). Cornell Law Review Online, Vol. 101, pp. 115-139 (2016); Duke University School of Law, Duke Public Law & Legal Theory Research Paper Series No. 2016-7. Available at SSRN: https://ssrn.com/abstract=2701556 or http://dx.doi.org/10.2139/ssrn.2701556

Steven L. Schwarcz (Contact Author)

Duke University School of Law ( email )

210 Science Drive
Box 90362
Durham, NC 27708
United States
919-613-7060 (Phone)
919-613-7231 (Fax)

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