The new financial deal
Subtitle: understanding the Dodd-Frank Act and its (unintended) consequences
By: David Skeel
Publisher: Wiley
Published: 2011
Place of publication: Hoboken, N.J
Language: eng
Number of pages: 220
ISBN-13: 9780470942758
Subjects: Financial institutions; United States; Law and legislation; Financial services industry
Description: "What can we expect from our era's New Deal? To answer this question, The New Financial Deal will begin with an inside account of the legislative process, then outline and access its key components: the new framework for regulating derivatives, the regulation of banking and systemic risk, and the new resolution regime. It will explain the implications of the new framework, and propose correctives that would better align its ostensible objectives--such as preventing future bailouts--with the new regulatory structure. The legislation's key theme is government partnership with and regulation of large concentrated institutions in order to reduce their risk and manage their failure. In place of the decentralized pre-crisis regulation of derivatives, the new legislation will require that most derivatives be cleared through a clearing house and traded on exchanges. The stability of the derivatives market will therefore depend on a small number of potentially enormous clearing houses. For large financial institutions that encounter financial distress, the legislation gives bank regulators sweeping new authority to step in and take over the institution. Regulators, rather than negotiations among the parties themselves, will determine the outcomes. These epochal reforms are posed to change Wall Street forever, but whether they help to regulate supermarket banks or create even more moral hazard is worthy of serious debate."--
Notes: Includes bibliographical references (p. 205-210) and index.
Table of contents: title: The corporatist turn in American regulation; title: The Lehman myth; title: Geithner, Dodd, Frank, and the legislative grinder; title: Derivatives reform : clearinghouses and the plain-vanilla derivative; title: Banking reform : breaking up was too hard to do; title: Unsafe at any rate; title: Banking on the FDIC (resolution authority I); title: Bailouts, bankruptcy, or better? (resolution authority II); title: Essential fixes and the new financial order; title: An international solution?