The concept of regulatory systemic risk – a long-term imbalance, resulting from the misalignment between regulatory initiatives and market realities, that impacts multiple areas of the regulatory framework – is developed in the context of US securities regulation. The discussion offers two...

It is well established that the Securities and Exchange Commission (“SEC”) has a mandate to protect investors and to encourage capital formation, but this Article argues that the SEC also has another mandate – to promote financial stability. Importantly, this does not mean that the SEC...

In recent years, the question of how to prevent another crippling re-cession has become a prominent one. The answer provided by the Dodd-Frank Act is stress testing, which examines through economic models how banks would react to a bad turn of economic events, such as negative interest rates....