After reviewing the history of abuses that occurred prior to the legislation passed in the 1930s, Professor Warren A. Law touches on some of the current problems he sees in today's market. Insider trading, hostile takeovers, shelf registration, and price banking are some of his major concerns. He comes to the somewhat surprising conclusion, though, that regulating these problems may not be an effective solution. He doubts that regulations put in place in the 1930s have been effective, citing studies by some leading economists to support his position. Commenting on a proposal to have Congress regulate takeover activities which have recently become so prevalent, Law expresses considerable skepticism.
Law concludes by suggesting that certain problems are simply inherent in the system.
We will, he argues, have to depend on the strength and integrity of individuals running this market machine, rather than on trying to fix a machine that appears to be in good working condition. The essays in this book have much to recommend. Historical reviews of the development of the U.S. financial sector and the array of regulations that accompanied this development are informative and insightful. Each essay, in fact, can stand on its own. This is a disadvantage to readers who are looking for a single uniform analysis that yields a consistent set of policy recommendations.