The Architecture of Financial Regulation

Cooley, Thomas F.; Walter, Ingo

doi:10.1002/9781118258231.ch1

Cited by 3 publications

(2 citation statements)

References 14 publications

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“…The difficult task of achieving optimum regulation has been described as "the art of balancing the immeasurable against the unknowable." (Cooley and Walter (2011))…”

Section: Regulatory Reform Comes After the Financial Stormmentioning

confidence: 99%

“…Plenty of examples attest to the inequality of this battle, with well-intentioned regulation undermined by regulatory arbitrage that distorts its purpose and implementation. (Cooley and Walter (2011)) The biggest mismatch in regulatory oversight was probably the regulation of AIG's Financial Products subsidiary by the Office of Thrift Supervision (OTS). This came about because AIG had acquired some small savings banks.…”

Section: The Trouble With Regulationmentioning

confidence: 99%

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The Financial Crisis: Lessons from History

Grinder¹,

Sarikas²,

Kiefer³

et al. 2015

IJRBS

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Financial crises have regularly afflicted economies throughout history and the United States has been no exception. This paper examines the Panic of 1907, the Crash of 1929 and the Great Depression and the Great Recession of 2007-08 and discusses the responses of the government and regulators. The short version of the story is that the while the government response has varied in terms of monetary and fiscal policy, the regulatory response has remained essentially the same. The typical reactive regulation sounds good and gives the appearance of accomplishing something but, in fact, only serves to sow the seeds of future crises. The ineffective implementation of existing regulation has had a similar result. Indeed, several authors note that most financial innovation in recent years has its origins in circumventing new regulations. Likewise, government monetary and fiscal responses may or may not help the economy and often give the appearance of great arbitrariness. Our conclusion is that there will be unforeseen financial crises in the future, sweeping regulation and promises of recent politicians notwithstanding. Serious study of the unanticipated consequences of this regulation and the development of more robust risk management systems will help us mitigate the effects of future crises but will be of little assistance when it comes to avoiding them. Developing the analyses and risk management systems requires a detailed study of financial history keep both successes and failures fresh in our collective memory.

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“…The difficult task of achieving optimum regulation has been described as "the art of balancing the immeasurable against the unknowable." (Cooley and Walter (2011))…”

Section: Regulatory Reform Comes After the Financial Stormmentioning

confidence: 99%

Section: The Trouble With Regulationmentioning

confidence: 99%

The Financial Crisis: Lessons from History

Grinder¹,

Sarikas²,

Kiefer³

et al. 2015

IJRBS

View full text Add to dashboard Cite

show abstract

Der Präsident schlägt vor, der Kongress ordnet an: US-Wirtschaftspolitik nach der Finanz- und Wirtschaftskrise

Mildner

Howald

2015

Handbuch Politik USA

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Financial Regulation and Social Welfare: The Critical Contribution of Management Theory

Marti

Scherer

2016

AMR

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While many studies explain how social science theories shape social reality, few reflect critically on how such theories should shape social reality. Drawing on a new conception of social welfare and focusing on financial regulation, we assess the performative effects of theories on public policy. We delineate how research that focuses narrowly on questions of efficiency and stability reinforces today's technocratic financial regulation that undermines social welfare. As a remedy, we outline how future management research can tackle questions of social justice and thereby promote an inclusive approach to financial regulation that better serves social welfare. Copyright of the Academy of Management, all rights reserved. Contents may not be copied, emailed, posted to a listserv, or otherwise transmitted without the copyright holder's express written permission. Users may print, download, or email articles for individual use only. 1 Monism does not preclude the possibility that many factors are relevant to social welfare. For example, as the editor kindly reminded us, some economists stress that factors related to stability and justice are as important for happiness as material wealth (Easterlin, 1974; Layard, 2011). Monism simply means that all these factors are commensurable and can be added up to a single measure (e.g., money or happiness).

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The Architecture of Financial Regulation

Cited by 3 publications

References 14 publications

The Financial Crisis: Lessons from History

The Financial Crisis: Lessons from History

Der Präsident schlägt vor, der Kongress ordnet an: US-Wirtschaftspolitik nach der Finanz- und Wirtschaftskrise

Financial Regulation and Social Welfare: The Critical Contribution of Management Theory

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