 Re-regulating finance to return markets at the service of societyInternational Journal of Happiness and Development, 2015, vol. 2, issue 3, 231-249 Abstract: The Great Financial Crisis primarily resulted from deregulation/liberalisation of finance. We discuss the deep mistakes of the 'light touch' regulation of finance subjugating commercial banks to financial-market-friendly rules. Those rules were reportedly violated in a blatant way, to the point that regulatory and courts' actions inflicted massive fines and/or settlements to the largest banks. Moreover, we claim that the current re-regulation keeps erring and does not cater for banking diversity. Thus, financial capitalism is still keeping society at the mercy of market idolatry, a dangerous stage in which finance is the least trusted industry. We argue that lacking this time a strong prosecutor, such as Ferdinand Pecora in 1933, made more difficult a serious re-regulation, the only path to restore financial stability. Appropriate leadership needs to reset markets at the service of society. Otherwise, financial sustainability risks being permanently endangered and the stability of the world as well. Keywords: financial regulation; financial capitalism; sustainable finance; financial crisis; banking diversity; light touch regulation; financial stability; financial markets; re-regulation; financial sustainability. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijhdev:v:2:y:2015:i:3:p:231-249 Access Statistics for this article More articles in International Journal of Happiness and Development from Inderscience Enterprises Ltd |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.