Saturday, December 8, 2007
Protecting Financial Markets: Lessons from the Subprime Mortgage Meltdown, by STEVEN L. SCHWARCZ, Duke University School of Law, was recently posted on SSRN. Here is the abstract:
Why has the recent subprime mortgage meltdown undermined financial market stability notwithstanding the protections provided by market norms and financial regulation? This article attempts to answer that question by identifying anomalies and obvious protections that failed to work, and then testing hypotheses that might explain the anomalies and failures. The resulting explanations provide critical insights into protecting financial markets.