The Financial Crisis and Its Lessons
In his article The financial crisis and the regulatory response: An interim assessment Howard Davies asks if we have done enough to prevent history repeating itself.
There is nothing quite like a financial crisis to focus political minds on how we regulate our affairs. In times of economic calm, politicians are not much concerned with supervisory agencies. The subject bores them. There is far more interest in pork barrel spending Bills, or in going to war with a country without too many voters at home. Only when markets go into spasm, and the public authorities have to step in with their cheque books, do legislators bend their minds to the issues. At that point it becomes clear that ‘something’ must be done, and that ‘something’ is usually either a raft of legislation giving regulators new powers to secure the doors of all the empty stables, or structural reform, or a combination of the two.
How, then, should we judge the latest raft of reforms? We cannot answer this question without...
- Davies, Howard, ‘The financial crisis and the regulatory response: An interim assessment’ in International Journal of Disclosure and Governance (volume 9, Issue 3). Palgrave Macmillan, 2012.Google Scholar