Category Archives: Regulations

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 »

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 »

Does Financial Tranquility Call for Stringent Regulation?

By | August 30, 2018

Courtesy of Deepal Basak and Yunhui Zhao[1] On August 22, 2018, the U.S. stock market broke the record for longest-ever bull market run after the S&P 500 went 3,453 days without a drop of 20 percent (a decline normally associated with a bear market). In fact, despite recent financial turbulence associated with monetary policy normalization… Read More »

China’s Unwelcome Stock Market Watchdog

By | May 23, 2017

Courtesy of Zuofa Wang 2016 was a wild ride for Chinese equity markets, with many institutional and retail investors suffering significant losses. Ironically, the market’s primary watchdog – the China Securities Regulatory Commission (CSRC) –  was the chief culprit for the market’s gyrations. This wasn’t the first time the CSRC intervened in China’s stock market… Read More »

Federal Law Leaves Banks Shying Away from Marijuana Businesses

By | December 5, 2016

Courtesy of Lee Reiners and John W. Matthews This past election day, voters in California, Maine,[1] Massachusetts, and Nevada voted to fully legalize marijuana, joining Alaska, Colorado, Oregon, and Washington as the only states in the union to permit the recreational use of marijuana. Rejoicing amongst legalization advocates has been tempered by the fact that… Read More »

Using Living Wills to Break up Big Banks

By | October 11, 2016

One of the key areas of focus during Wells Fargo CEO John Stumpf’s recent congressional testimony, was the timeline of events that led up to him becoming aware of the problems within the company’s community banking division.  Despite the fact that the firm fired over 1,000 employees in 2011 for opening unauthorized customer accounts, and… Read More »

Effects of Regulatory Reform on Growth

By | October 5, 2016

After delivering a speech at a conference in Atlanta during the summer of 2011, then Federal Reserve Chairman Ben Bernanke received a pointed question from JP Morgan Chase CEO Jamie Dimon, who after listing several new post-crisis banking regulations, asked the Chairman: “Has anyone bothered to study the cumulative effect of all these things, and… Read More »