It has been now about four years since the eruption of the Financial Crisis of 2007, and major reforms of the banking system have been achieved in the U.S. with the enactment of the Frank-Dodd Act in 2010, and several legislative initiatives under way in the EU that are planned to be completed...

The central purpose of this paper is to take stock in the regulatory reform looking with the prism of economic theory. We start by a summary of the basic principles that should preside at the reform. The paper studies the financial regulatory reforms currently proposed by the US administration,...