Human Foibles, Fraud, Manipulation, and Regulation -Year 2008 Financial Markets (ECON 252) Regulation of financial and securities markets is intended to protect investors while still enabling them to make personal investment decisions. Psychological phenomena, such as magical thinking, overconfidence, and representativeness heuristic can cause deviations from rational behavior and distort financial decision-making. However, regulation and regulatory bodies, such as the SEC, FDIC, and SIPC, most of which were created just after the Great Depression, are intended to help prevent the manipulation of investors' psychological foibles and maintain trust in the markets so that a broad spectrum of investors will continue to participate. 00:00 - Chapter 1. Introduction 03:24 - Chapter 2. Human Errors in Financial Decision-Making 22:34 - Chapter 3. Why Regulation of Finance Is Necessary 27:51 - Chapter 4. The Rise of the Securities and Exchange Commission 39:18 - Chapter 5. Regulation of Private Investments and Hedge Funds 49:14 - Chapter 6. Nongovernmental Surveillance of Insider Trading and Accounting Regulation 59:45 - Chapter 7. Protections for the Individual Investor: the SIPC and the FDIC 01:10:38 - Chapter 8. Conclusion Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses This course was recorded in Spring 2008.
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Tags: attention anomalies FDIC financial institutions Louis Brandeis magical thinking overconfidence quasi-magical regulation representativeness heuristic SEC SIPC SIV
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Lec 1-Year 2008 Finance and Insurance as Powerful Forces in Our
Lec 2 -Year 2008 - The Universal Principle of Risk Management: Pooling
Lec 3 -Year 2008 - Technology and Invention in Finance
Lec 4 -Year 2008 - Portfolio Diversification and Supporting Financial
Lec 5 -Year 2008 - Insurance: The Archetypal Risk Management
Lec 6 -Year 2008 - Efficient Markets vs. Excess Volatility
Lec 7 -Year 2008 - Behavioral Finance: The Role of Psychology
Lec 9 -Year 2008 - Guest Lecture by David Swensen
Lec 10 -Year 2008 - Debt Markets: Term Structure
Lec 12 -Year 2008 - Real Estate Finance and its Vulnerability to Crisis
Lec 13 -Year 2008 - Banking: Successes and Failures
Lec 14 -Year 2008 - Guest Lecture by Andrew Redleaf
Lec 15 -Year 2008 - Guest Lecture by Carl Icahn
Lec 16 -Year 2008 - The Evolution and Perfection of Monetary Policy
Lec 17 -Year 2008 - Investment Banking and Secondary Markets
Lec 18 -Year 2008 - Professional Money Managers and Their Influence
Lec 19 -Year 2008 - Brokerage, ECNs, etc.
Lec 20 -Year 2008 - Guest Lecture by Stephen Schwarzman
Lec 21 -Year 2008 - Forwards and Futures
Lec 22 -Year 2008 - Stock Index, Oil and Other Futures Markets
Lec 23 -Year 2008 - Options Markets
Lec 24 -Year 2008 - Making It Work for Real People: The Democratization
Lec 25 -Year 2008 - Learning from and Responding to Financial Crisis I
Lec 26 -Year 2008 Learning from and Responding to Financial Crisis II