FEEM Lecture by Prof. Jean Tirole: New Finance, New Rules
18:00 - 19:30
The severe financial and economic crisis calls not only for an appropriate response in order to limit collateral damages on the economy, but, even more fundamentally, for wide ranging reforms in the regulation of our financial system; the analysis of causes reveals a massive regulatory failure, from design to implementation.
After establishing a diagnostic and recalling the raison d’être of the regulation of financial institutions, the lecture will discuss how steps can be taken, that can bring back financial stability without making regulation too intrusive. In particular the lecture will focus on the securitization process and derivative markets, prudential regulation (including in its pro-cyclical features), the regulation of rating agencies, and the international regulatory infrastructure.
Introduction by Domenico Siniscalco, Morgan Stanley