"Lec 12 - Misbehavior, Crises, Regulation and Self Regulation Financial Markets (2011) (ECON 252) After talking about human failures and foibles in the last lecture, this lecture is concerned with regulation to minimize the impact of human errors. Professor Shiller outlines five different levels of regulation: Regulation on the firm level, on the level of trade groups, on the regional, the national, and the international level. Concerning the first level, he emphasizes the role of the board of directors as the regulators of a company, its duties of care and loyalty, and its responsibilities in the face of tunneling. On the level of trade groups, Professor Shiller presents the history of the New York Stock Exchange from the signing of the Buttonwood Agreement until today. The subsequent description of regional regulation centers on Blue Sky laws during the progressive era of the U.S. in the late 19th and early 20th century. On the national level of regulation, he covers the founding days of the Securities and Exchange Commission, its regulation of hedge funds, as well as its efforts against the trading of insider information and stock price manipulation. He complements his coverage of national regulation with the regulatory efforts in the aftermath of the financial crisis from 2007-2008, i.e. the creation of the Financial Stability Oversight Council and of the Consumer Financial Protection Bureau by the Dodd-Frank Act from 2010, paired with the European efforts in the course of the European Supervisory Framework, also from 2010. With respect to the fifth and final level of regulation - international regulation - Professor Shiller talks about the Basel Committee on Banking Supervisionand the G-20. 00:00 - Chapter 1. The Importance of Regulation and Its Challenges 08:10 - Chapter 2. Firm Level Regulation: The Board and Its Duties 25:37 - Chapter 3. Trade Group Level Regulation and Its Controversies 38:17 - Chapter 4. Local Regulation: The Progressive Era 42:59 - Chapter 5. National Regulation: The Securities and Exchange Commission 49:41 - Chapter 6. Minimal Regulation: Hedge Funds 55:39 - Chapter 7. Market Surveillance: Preventing Manipulation 01:04:25 - Chapter 8. Regulatory Pushes at Home and Abroad Complete course materials are available at the Open Yale Courses website: http://oyc.yale.edu This course was recorded in Spring 2011.
Video is embedded from external source so embedding is not available.
Video is embedded from external source so download is not available.
Tags: Lec 12 - Misbehavior, Crises, Regulation and Self Regulation
Uploaded by: yalefinancialmkt ( Send Message ) on 14-09-2012.
Duration: 76m 29s
No content is added to this lecture.
This video is a part of a lecture series from of Yale
Lec 1 - Introduction and What this Course Will Do for You and Your Purposes
Lec 2 - Risk and Financial Crises
Lec 3 - Technology and Invention in Finance
Lec 4 - Portfolio Diversification and Supporting Financial Institutions
Lec 5 - Insurance, the Archetypal Risk Management Institution, its Opportunities and Vulnerabilities
Lec 6 - Guest Speaker David Swensen
Lec 8 - Theory of Debt, Its Proper Role, Leverage Cycles
Lec 11 - Behavioral Finance and the Role of Psychology
Lec 14 - Guest Speaker Maurice
Lec 15 - Forward and Futures Markets
Lec 16 - Guest Speaker Laura Cha
Lec 20 - Professional Money Managers and their Influence
Lec 21 - Exchanges, Brokers, Dealers, Clearinghouses
Lec 22 - Public and Non-Profit Finance
Lec Last - Finding your Purpose in a World of Financial Capitalism