Leverhulme Lecture: The Global Financial Crisis and Systemic Risk

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https://scholarship.law.duke.edu/faculty_scholarship/2353; https://scholarship.law.duke.edu/faculty_scholarship/2352
Schwarcz, Steven L.
Risk management; Administrative law; Money market; Risk assessment; financial markets, regulation; financial markets, regulation, systemic risk
article description
Lecture given November 9, 2010, is the first of three delivered by Prof. Schwarcz as Leverhulme Visiting Professor of Law, Oxford University. Prof. Schwarz examines the causes of the global financial crisis, showing it was triggered by market failures, not by financial institution failures, and arguing that any regulatory framework for managing systemic risk must address markets as well as institutions. The lecture also analyzes how regulation should be designed under that broader framework to mitigate systemic risk and its consequences. Finally, the lecture examines the potential systemic effects of sovereign debt crises, demonstrating how regulation can mitigate those effects.