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'Much ado about nothing?' Transnational civil society, consumer protection and financial regulatory reform

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  • Lisa Kastner

Abstract

The literature on financial regulation has typically emphasized the role of the powerful financial industry in shaping regulatory outcomes. However, capture theories cannot explain the prominence of financial consumer protection in post-crisis reform agendas. By contrast, this article argues that, despite their collective action disadvantage, a polymorphous network of civil society organizations was able to gain momentum after the financial crisis and to influence the financial reform process. In this policy window, where decision-makers were looking out for an alternative source of expertise, a transnationally connected civil society (TCS) network successfully mobilized to place consumer protection on reform agendas in tandem with public entrepreneurs and on the back of a popular backlash against big finance. This argument will be explored through a comparative study of the impact of transnational pressures on policy-makers in Europe and the US in the immediate aftermath of the crisis. In the conclusion, the article shortly discusses the substance of the financial reforms that have been undertaken.

Suggested Citation

  • Lisa Kastner, 2014. "'Much ado about nothing?' Transnational civil society, consumer protection and financial regulatory reform," Review of International Political Economy, Taylor & Francis Journals, vol. 21(6), pages 1313-1345, December.
    • Handle: RePEc:taf:rripxx:v:21:y:2014:i:6:p:1313-1345
    DOI: 10.1080/09692290.2013.870084
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    References listed on IDEAS

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    1. Culpepper,Pepper D., 2011. "Quiet Politics and Business Power," Cambridge Books, Cambridge University Press, number 9780521118590, Enero-Abr.
    2. Culpepper,Pepper D., 2011. "Quiet Politics and Business Power," Cambridge Books, Cambridge University Press, number 9780521134132, Enero-Abr.
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    Citations

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    Cited by:

    1. Lisa Kastner, 2017. "From Outsiders to Insiders: A Civil Society Perspective on EU Financial Reforms," Post-Print hal-02184200, HAL.
    2. Lisa Kastner, 2017. "Tracing policy influence of diffuse interests: The post-crisis consumer finance protection politics in the US," Sciences Po Economics Publications (main) hal-02186320, HAL.
    3. repec:spo:wpmain:info:hdl:2441/5i9sdlmn86dbqvlbfj33d477 is not listed on IDEAS
    4. repec:osf:osfxxx:f6t5y_v1 is not listed on IDEAS
    5. Francesca Colli & Johan Adriaensen, 2020. "Lobbying the state or the market? A framework to study civil society organizations’ strategic behavior," Regulation & Governance, John Wiley & Sons, vol. 14(3), pages 501-513, July.
    6. Lucia Quaglia & Aneta Spendzharova, 2017. "Post‐crisis reforms in banking: Regulators at the interface between domestic and international governance," Regulation & Governance, John Wiley & Sons, vol. 11(4), pages 422-437, December.
    7. Rosa M. Mayoral & Eleuterio Vallelado, 2017. "Beyond rational behaviour: the non-financial variables that condition shareholder action during a takeover," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 20(3), pages 254-270, July.
    8. Justin Greenwood & Christilla Roederer‐Rynning, 2015. "The “Europeanization” of the Basel process: Financial harmonization between globalization and parliamentarization," Regulation & Governance, John Wiley & Sons, vol. 9(4), pages 325-338, December.
    9. Lisa Kastner, 2017. "Tracing policy influence of diffuse interests: The post-crisis consumer finance protection politics in the US," Post-Print hal-02186320, HAL.
    10. Lisa Kastner, 2017. "Business lobbying under salience," Post-Print hal-02187871, HAL.
    11. repec:spo:wpmain:info:hdl:2441/3nka4e6nut8kgpcddm4r1h1hbf is not listed on IDEAS
    12. Lisa Kastner, 2017. "Business lobbying under salience," Sciences Po Economics Publications (main) hal-02187871, HAL.
    13. Kevin Young & Stefano Pagliari, 2017. "Capital united? Business unity in regulatory politics and the special place of finance," Regulation & Governance, John Wiley & Sons, vol. 11(1), pages 3-23, March.
    14. Bastiaan Redert, 2020. "Stakeholder Mobilization in Financial Regulation: A Comparison of EU Regulatory Politics over Time," Journal of Common Market Studies, Wiley Blackwell, vol. 58(6), pages 1433-1451, November.
    15. Xue, Qinyuan & Zhan, Peng & Jin, Yifei & He, Hui, 2024. "Reputation, commitment, and financial market regulation," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    16. Coban, Mehmet Kerem, 2020. "Diffuse interest groups and regulatory policy change: Financial consumer protection in Turkey," OSF Preprints f6t5y, Center for Open Science.
    17. Lisa Kastner, 2017. "From Outsiders to Insiders: A Civil Society Perspective on EU Financial Reforms," Sciences Po Economics Publications (main) hal-02184200, HAL.

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