Capital Markets Regulatory Reform

Capital markets regulatory reform : strengthening investor protection, enhancing oversight of private pools of capital, and creating a national insurance office : hearing before the Committee on Financial Services, U.S. House of Representatives, One Hundred Eleventh Congress, first session, October 6, 2009.

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"In the wake of the global financial crisis that began in 2008, offers a systematic overview of recent developments in regulatory frameworks in advanced and emerging-market countries, outlining challenges to improving regulation, markets, and access in developing economies"--Provided by publisher.

What role should regulation play in financial markets? What have been the ramifications of financial regulation? To answer these and other questions regarding the efficacy of legislation on financial markets, this book examines the impact of the Gramm Leach Bliley Act (GLBA), also called the Financial Modernization Act of 1999, which fundamentally changed the financial landscape in the United States. The GLBA allows the formation of financial holding companies that can offer an integrated set of commercial banking, securities and insurance products. The tenth anniversary of the most sweeping financial legislation reform in the industry’s structure is a natural benchmark for assessing the effects of the law and for questioning whether changes are necessary in the working of this historic legislation. The importance of this review is reinforced by a variety of proposals in the last several years to reform the regulation of financial institutions that have attracted considerable attention among regulators and in the financial firms that they regulate. Most recently, the financial crisis and the failure of some large financial institutions have called into question the legitimacy of America’s current financial structure and its regulation, including to some degree the GLBA. There is no doubt that regulatory reform is front and center on today’s policy agenda. The lessons of the GLBA experience and its effects, both domestic and international, on financial markets and competitiveness, risk-taking and risk management by financial services firms and their regulators will be critical to the direction the country takes and the effort to ensure that future financial crises do not occur or have less costly damage. With contributions from academics, policy experts, and a sponsor of the GLBA, Congressman James Leach, this book is invaluable to anyone interested in financial system reform.

' Ever since the Great Recession, the global financial regulatory system has undergone significant changes. But have these changes been sufficient? Have they created a new problem of over-regulation? Is the system currently in a better position than in the pre-Recession years, or have we not adequately addressed the basic causes of the financial crisis and resulting Great Recession? These were the questions and issues addressed in the seventeenth annual international banking conference held at the Federal Reserve Bank of Chicago in November 2014. In collaboration with the Bank of England, the theme of the conference was to examine the state of the new global financial system as it has evolved in response to significant market changes and regulatory reforms triggered by the global financial crisis. The papers from that conference are collected in this volume, with contributions from an international array of government officials, regulators, industry practitioners and academics. Contents:Special Addresses:Financial Entropy and the Optimality of Over-regulation (Alan S Blinder)Implementing the Regulatory Reform Agenda: The Pitfall of Myopia (Stefan Ingves)A Financial System Perspective on Central Clearing of Derivatives (Jerome H Powell)Regulatory and Market Response to the Financial Crisis — Banking:Shadow Banking in China (Andrew Sheng)Fed Liquidity Policy during the Financial Crisis: Playing For Time (Robert Eisenbeis and Richard Herring)Europe''s Banking Union: Status and Prospects (Nicolas Véron)Regulatory and Market Response to the Financial Crisis — Capital Markets:Capital Market Regulation in Japan after the Global Financial Crisis (Takeo Hoshi and Ayako Yasuda)Systemic Risk and Public Institutions: Evolving Perspectives from the Financial Crisis (Chester Spatt)Securities Regulation During and After the 2008 Financial Crisis (Jennifer E Bethel and Erik R Sirri)Regulatory Reform, its Possible Market Consequences and the Case of Securities Financing (David Rule)Resolving Systemically Important Financial Institutions and Markets:A Critical Evaluation of Bail-in as a Bank Recapitalization Mechanism (Charles Goodhart and Emilios Avgouleas)Resolving Systemically Important Financial Institutions and Markets (Adam Ketessidis)The Role of Bankruptcy in Resolutions (Kenneth E Scott)The Single Point of Entry Resolution Strategy and Market Incentives (James R Wigand)Transitional Impact of the Reforms on the Financial Sector:Model Risk and the Great Financial Crisis: The Rise of Modern Model Risk Management (Jeffrey A Brown, Brad McGourty and Til Schuermann)Banking in a Re-Regulated World (Luc Laeven)Financial Reform in Transition (Philipp Hartmann)Transitional Impact of the Reforms on the Real Sector:The Jury Is In (Stephen G Cecchetti)Regulations, Reforms, and the Real Sector (Martin Čihák)Financial Fragmentation, Real-sector Lending, and the European Banking Union (Giovanni Dell''Ariccia)New Capital and Liquidity Requirements: Transitional Effects on the Economy (Douglas J Elliott)Long-term Cumulative Steady State Outcome of Reforms — Future Concerns?:Some Effects of Capital Regulation When There are Competing, Nonbank Lenders (Mark J Flannery)The Steady State of the Banking Union (Dirk Schoenmaker)Resolving Systemically Important Entities: Lessons from the Government Sponsored Enterprises (Mark Calabria)Policy Panel — Where to from Here?:Assessing the Overall Impact of Financial Reforms (Svein Andresen)Financial Regulation: Where to From Here? (Vitor Constâncio)Where To From Here?: Financial Regulation 2.0 (Andrew W Lo)Key Fragilities of the Financial System (Randall S Kroszner)Where to From Here for Financial Regulatory Policy?: Analyzing Housing Finance (David Scharfstein) Readership: Advanced economics, finance and policy undergraduates and postgraduates; finance professionals; policy makers and researchers who are interested in financial systems and analysis of regulations put into place post-Recession. Keywords:Financial Stability;Systemic Risk;Financial Regulation;Too-Big-to-Fail;Regulatory Burden;Financial Institutions'