Author Archives: Guest Blogger

When Tech Meets Money: the Central-Bank Digital Currency

By | May 22, 2019

Courtesy of Marcelo M. Prates Not long ago, money was simple, central banks were all but invisible, and banks seemed like an inevitable nuisance. Money consisted of the coins and notes carried in wallets, or the checkbook in the desk drawer. Central banks were poorly understood institutions, entrusted with the mystical power to print money.… Read More »

A Typology for Diagnosing and Remedying Regulatory Capture in Financial Regulation

By | May 7, 2019

Courtesy of Justin Rex The study of regulatory capture has a long history across various disciplines. Yet, scholars still disagree on its definition and pervasiveness. This post proposes a typology for organizing literature on regulatory capture under a few key dimensions to help scholars and practitioners better diagnose capture and choose appropriately tailored policy responses.… Read More »

Securities Fraud: Not Just for Policing Financial Markets

By | May 2, 2019

Courtesy of Joseph T. McClure In the wake of the Facebook-Cambridge Analytica scandal, data privacy emerged as a hot-button issue that politicians of all ideological persuasions will add to their stump speeches before the 2020 elections. It also appears likely to join issues such as climate change, gun violence, and workplace sexual misconduct as the… Read More »

Entrepreneurial Finance and Moral Hazard: Evidence from Token Offerings

By | April 30, 2019

Courtesy of Paul P. Momtaz Token Offerings or Initial Coin Offerings (ICOs) are a rapidly growing market, with more than 4,500 transactions in 2018 alone. However, there is also substantial fraudulent activity spurred by the absence of regulation. My new paper, Entrepreneurial Finance and Moral Hazard: Evidence from Token Offerings, explores a very subtle, hard-to-track… Read More »

High-Frequency Trading Comes to Cryptocurrency

By | April 24, 2019

Courtesy of Marissa Cantu and Lee Reiners Amidst last December’s stock market volatility, Treasury Secretary Steve Mnuchin argued “high-frequency traders combined with the Volcker Rule” were to blame.  Secretary Mnuchin then announced he intended to ask the Financial Stability Oversight Council to review how market structure, in conjunction with high-frequency trading, contributes to stock market… Read More »

Cybersecurity for American Families: A 10-Step Data Security Guide for the People You Love

By | April 15, 2019

Courtesy of Mary Wang For the past several months, I have been working on an interdisciplinary team of students and faculty at Duke that explored the ways in which data breaches and the misappropriation of personal information can harm ordinary consumers. This issue matters because recent breaches have affected nearly every American, many of whom have had… Read More »

The Pros and Cons of Big Tech Banking

By | April 10, 2019

Courtesy of Miguel de la Mano and Jorge Padilla The entry of Big Tech players, such as Google, Facebook and Amazon, into online banking will fundamentally alter retail banking’s competitive landscape. Big Tech platforms have large, installed customer bases, established reputations, powerful brands, considerable earnings and unfettered access to capital markets. They can leverage superior… Read More »

Central Bank Digital Currency – Growing Interest, Concrete Data

By | March 28, 2019

Courtesy of Barbara C. Matthews Regulators may be setting their sights on how to regulate Big Tech – as discussed in last month’s FinReg Blog post – but, as central banks and finance ministers prepare to convene in Washington in April for the IMF/World Bank Spring Meetings, the issue poised to generate the most interest… Read More »

Mortgage Servicers Have Monopoly Power: Do Financial Regulators Understand This?

By | March 12, 2019

Courtesy of James E. McNulty Americans have always distrusted monopolies – over a century ago, Teddy Roosevelt gained widespread public approval battling the trusts. Monopolies that continue to exist, like public utilities[1], are subject to stringent regulation on both the price and quality of their services. Mortgage servicing is one monopolistic industry that has avoided… Read More »

The Network Effects of International Financial Regulation

By | March 4, 2019

Courtesy of Hadar Yoana Jabotinsky & Barak Yarkoni* In our globalized financial markets, the actions of a market participant or regulator in one jurisdiction can have a ripple effect in other jurisdictions, thus making international regulatory cooperation a necessity. International harmonization of financial regulation produces three different kinds of network effects, which we identify and… Read More »