Scholarship@WashULaw

Document Type

Essay

Language

English (en)

Publication Date

2015

Publication Title

SMU Law Review

Abstract

In the aftermath of the 2008-2009 financial crisis, I characterized its causes broadly:

First, there was an ongoing economic emergency, initially rooted in the housing and credit markets, which has been succeeded by the collapse of several leading investment and commercial banks and insurance companies, dramatic deterioration of stock market indices, and a rapidly deepening recession.

Second, there were serious breakdowns in the enforcement and fraud deterrence missions of federal financial regulation, notably as illustrated by matters involving Bear Stearns and the other four then independent investment banks subject to the SEC's former Consolidated Supervised Entities program, the government creation of conservatorships for Fannie Mae and Freddie Mac, and the Bernard Madoff case.

Third, there was a misalignment between federal financial regulation and financial firms and intermediaries. The structure of financial regulation that was developed during the 1930s did not keep pace with fundamental changes in finance.

Keywords

Financial Crisis, Federal Financial Regulation, Securities and Exchange Commission

Publication Citation

Joel Seligman, The New Financial Order: An Essay for Alan Bromberg Tributes to Professor Alan R. Bromberg, 68 S.M.U. L. Rev. 877 (2015)

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