Authors

Morgan Ricks

Document Type

Article

Publication Title

Regulation

Publication Date

2013

ISSN

0147-0590

Page Number

36

Keywords

financial stability, financial reform, Dodd-Frank, shadow banking

Disciplines

Banking and Finance Law | Law

Abstract

There is a growing consensus that new financial reform legislation may be in order. The Dodd-Frank Act of 2010, while well-intended, is now widely viewed to be at best insufficient, at worst a costly misfire. Members of Congress are considering new and different measures. Some have proposed substantially higher capital requirements for the largest financial firms; others favor an updated version of the old Glass-Steagall regime. This paper offers up a simpler approach, one that centers around the financial sector’s short-term funding. The simpler approach would be compatible with other financial stability reforms, but it is better understood as a substitute for Dodd-Frank and other measures.

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