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The Future of Securities Regulation

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  • Luigi Zingales

    (University of Chicago, NBER & CEPR)

Abstract

The U.S. system of security law was designed more than 70 years ago to regain investors’ trust after a major financial crisis. Today we face a similar problem. But while in the 1930s the prevailing perception was that investors had been defrauded by offerings of dubious quality securities, in the new millennium, investors’ perception is that they have been defrauded by managers who are not accountable to anyone. For this reason, I propose a series of reforms that center around corporate governance, while shifting the focus from the protection of unsophisticated investors in the purchasing of new securities issues to the investment in mutual funds, pension funds, and other forms of asset management.

Suggested Citation

  • Luigi Zingales, 2009. "The Future of Securities Regulation," Working Papers 2009.7, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2009.7
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    More about this item

    Keywords

    U.S. Security Law; Securities Regulation; Trust;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G01 - Financial Economics - - General - - - Financial Crises

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