2017-11-19 08:37:00 Sun ET
stock market competition macrofinance stock return s&p 500 financial crisis financial deregulation bank oligarchy systemic risk asset market stabilization asset price fluctuations regulation capital financial stability dodd-frank
In 2000, a former law professor at Harvard proposed establishing the Financial Product Safety Commission in order to protect consumer rights in the provision of financial products and services. A decade later, that law professor, Elizabeth Warren, witnessed the congressional approval of the 2010 Dodd-Frank Act and the resultant new regulatory agency, the Consumer Financial Protection Bureau, which aims to restore trust in financial institutions with 5 major pillars of financial regulation: capital adequacy rules, leverage limitations, liquidity requirements, macroprudential stress tests, and deposit insurance constraints.
"It is impossible to buy a toaster that has a 1-in-5 chance of bursting into flames and burning down a house, but it is possible to refinance a current home with a mortgage that has the same 1-in-5 chance of putting the family out on the street," Warren wrote in the first paragraph in her influential Democracy article. Maybe a toaster or a financial product or service is so defective that consumers should not be thrown back on themselves to avoid it. Conversely, consumers with more confidence in financial products or services are more likely to purchase them.
These paternalistic considerations offer insights into the Trump administration's plan to dismantle much of the Dodd-Frank Act, especially the bank capital rules and stress tests. The law of inadvertent consequences counsels caution.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-07-23 09:22:00 Tuesday ET
Harvard economic platform researcher Dipayan Ghosh proposes some alternative solutions to breaking up tech titans such as Facebook, Google, Apple, and Amazo
2020-10-20 09:36:00 Tuesday ET
Agile lean enterprises remain flexible and capable of reinvention in light of new megatrends such as digitization and servitization. Shane Cragun and Kat
2024-02-04 08:28:00 Sunday ET
Our proprietary alpha investment model outperforms most stock market indexes from 2017 to 2024. Our proprietary alpha investment model outperforms the ma
2022-11-25 09:29:00 Friday ET
Uniform field theory of corporate finance While the agency and precautionary-motive stories are complementary, these stories can be nested as special cas
2018-10-23 12:36:00 Tuesday ET
Former Fed Chair Paul Volcker releases his memoir, talks about American public governance, and worries about plutocracy in America. Volcker suggests that pu
2020-04-24 11:33:00 Friday ET
Disruptive innovations tend to contribute to business success in new blue-ocean markets after iterative continuous improvements. Clayton Christensen and