Banking on Change: The Reorganization of Financial Regulation

Systemic Risk in the Financial Industry: 'Mimetism' for the Best and for the Worst

“…These demands were supported by authors who argued that "the emerging economic environments demands corresponding changes in the regulatory structure. There needs to be a single coherent policy toward financial institutions" (Carron 1984). Over time, regulations were increasingly eased in a series of steps that culminated in the Riegle-Neal Interstate Banking and Branching Efficiency Act (1994), the repeal of the Glass-Steagall Act in 1999, and the Financial Services Modernization Act of 2000, which effectively forbade federal and state officials from regulating "Over the Counter" financial derivatives between "sophisticated parties," thereby effectively freeing Credit Default Swaps and many other varieties of financial derivatives from virtually any oversight.…”

Persistent Leadership: Presidents and the Evolution of U.S. Financial Reform, 1970‐2007

“…Hammond and Knott's (1988) analysis of financial deregulation emphasized the instability of regulatory regimes in the face of technological innovation, but Hammond and Knott barely mentioned presidential leadership. It is unquestionably correct that technological change was a powerful element in changing the status quo in ways that created pressures for deregulation (Carron 1984; Phillips 1977). However, to realize the full possibilities of new technology, legal changes in the regulatory regime had to occur at the congressional level.…”